Telecom bondholders offered fee to approve de-merger
Standard & Poor's and Moody's Investors Service have already said a direct consequence of the de-merger will be a one notch downgrade of Telecom's current "A" rating (on the S&P scale) to "-A" for "new Telecom."
Bondholders will remain debt holders of "new Telecom" while "new Chorus" will be rated "BBB" by S&P and "Baa2" by Moody's.
The bondholders will vote on the de-merger on September 30, ahead of the vote by Telecom shareholders scheduled for November 14.
The "consent fee" will be paid only to those bondholders voting in favour and only if the vote succeeds.
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