Telecom Italia successfully completes the launch of a multi-tranche bond for a total of 2 billion dollars

05/29/2009 - 08:54 AM

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The transaction lengthens the average debt maturity 
And further diversifies the investor base

Milan, 29 May 2008

Telecom Italia announces that Telecom Italia Capital SA successfully completed the launch of a multi-tranche bond issue for a total of USD 2 billion. 
The issue is part of the process of refinancing maturing debt and of diversifying the investor base. This operation, in particular, further lengthens the average life of debt, managing once more to obtain credit with extra-long maturities.
Today’s bond issue was split into two fixed-rate tranches, a 10-year and a 30-year, which is a combination not achievable on the Euro market.

Details are:

10-year fixed rate tranche
Issuer:    Telecom Italia Capital S.A.
Guarantor:   Telecom Italia S.p.A.
Amount:   USD 1,000 million 
Settlement date:  4 June 2008
Maturity:   4 June 2018
Coupon:   6.999%
Issue price:   100%
Redemption price:   100%
The effective yield to maturity of the 10 year fixed rate is 6.999% per year, which corresponds to a yield of 300 basis points above the corresponding US Treasury bond.

30-year fixed-rate tranche: 
Issuer:    Telecom Italia Capital S.A.
Guarantor:   Telecom Italia S.p.A.
Amount:   USD 1,000 million
Settlement date:  4 June 2008
Maturity:   4 June 2038
Coupon:   7.721%
Issue price:   100%
Redemption price:   100%
The effective yield to maturity of the 30 year fixed rate is 7.721% per year, which corresponds to a yield of 305 basis points above the corresponding US Treasury bond.

The bonds will be issued under the 10 billion US dollar ”Shelf Registration” program filed in August  2005 with the SEC and will be listed on the Luxembourg Stock Exchange.


This press release does not constitute a solicitation to invest, nor can the sale of these bonds take place in jurisdictions in which their offer, solicitation or sale is not legal, or in other words, with methods or limits different to those allowed by the applicable regulations.

 

Telecom Italia
Media Relations
+39 06 3688 2424
http://www.telecomitalia.it/media

Telecom Italia
Investor Relations
+39 02 8595 4131
http://www.telecomitalia.it/investor_relations