UPDATE 1-Spain's Telefonica sells Atento to cut debt
* Bain Capital to buy Atento in 1 billion euro deal
* Telefonica to provide Bain 110 mln euros in financing
* Sale expected to close before year-end
(Adds details and background)
MADRID, Oct 12 (Reuters) - Spain's Telefonica has reached a 1 billion euro ($1.3 billion) agreement to sell its Atento call centre business to investment firm Bain Capital as part of a plan to sell assets and cut debt.
The sale follows the Spanish telecom operator's failed attempt to list Atento last year.
Telefonica is under pressure to raise funds and reduce a 57 billion euro debt pile as it struggles to keep its investment grade rating while its crisis-hit home market suffers.
As part of the agreement, Telefonica will provide Bain with 110 million euros of financing, it said in a statement to the stock market regulator.
Telefonica, which said it hoped to close the sale before the end of this year, needs to raise between 7 billion and 8 billion euros a year through 2015 to cope with debt repayments.
It is also preparing to spin off its German O2 subsidiary and has said it was also considering listings in Latin America.
($1 = 0.7726 euros)
(Reporting By Tracy Rucinski; Editing by Hans-Juergen Peters)
Keywords: TELEFONICA ATENTO/