Telecom Italia's € 6 billion Eurobond Offering successfully placed

04/10/2001 - 00:00 PM

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Telecom Italia announced that, during the course of the day, 3 debt issues totalling 6 billion euros were successfully placed.

In response to strong institutional demand from domestic and international investors, Telecom Italia increased the initial amount of € 5 billion by 20%.

The offering, made under Telecom Italia´s Global Medium Term Note Program with Sogerim S.A. as issuer with the full and unconditional guarantee of Telecom Italia S.p.A.., was divided into three tranches:

1st Tranche
Amount
: € 1 billion
Maturity: April 20, 2004
Coupon: 3 month Euribor + 87.5 bps
Issue price: 99.514
Yield: 3 month Euribor + 105 bps

2nd Tranche
Amount
: € 3 billion
Maturity: April 20, 2006
Coupon: 6.125%
Issue price: 99.937
Spread: 140 bps over mid-market swaps

3rd Tranche
Amount
: € 2 billion
Maturity: April 20, 2011
Coupon: 7.00 %
Issue price: 99.214
Spread: 185 bps over mid-market swaps

This offering is part of Telecom Italia´s program to refinance existing short-term bank debt and diversify funding sources, without enlarging its overall indebtedness.

The Chairman and CEO of Telecom Italia, Roberto Colaninno, stated: "We are delighted with the investor reception that enabled us to increase the transaction to 6 billion euros. The market today showed its support for Telecom Italia´s operational results, the discipline applied in the management of the Group, and the strategies we intend to implement."