TELECOM ITALIA SUCCESSFULLY COMPLETES THE LAUNCH OF A MULTI-TRANCHE BOND FOR A TOTAL OF 1,5 BILLION EURO

03/12/2009 - 08:00 AM

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Year to date the Group has already funded 2.6 billion euro
Pricing closed below initial guidance

Telecom Italia successfully completed the launch of a two-tranche bond issue for a total of Euro 1.5 billion. 
This issue is part of the process of refinancing maturing debt . 
The success of the issue, closed in less than 24 hours,  confirms investors’ appetite for Telecom Italia credit and the Group capacity to easily tap the bond market.
Today’s bond issue was split into two fixed-rate tranches, a 4-year and a 7-year.

Details are:

4-year fixed rate tranche
Issuer:    Telecom Italia S.p.A.
Amount: Euro 650 million 
Settlement date:  19 march 2009
Maturity:   21 march 2013
Coupon:   6.75%
Issue price:   99.574%
Redemption price:   100%
The effective yield to maturity of the 4 year fixed rate is 6.875% per year, which corresponds to a yield of 435 basis points above the reference rate (mid – swap).

7-year fixed-rate tranche: 
Issuer:    Telecom Italia S.p.A.    
Amount:   Euro 850 million
Settlement date:  19 march 2009
Maturity:   21 march 2016 
Coupon:   8.25%
Issue price:   99.740%
Redemption price:   100%
The effective yield to maturity of the 7 year fixed rate is 8.30% per year, which corresponds to a yield of 525 basis points above the above the reference rate (mid – swap).

The bonds will be issued under the Euro 15 billion EMTN Programme 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.


Milan, 12 March 2009