Telecom Italia: announces results and pricing of its tender offers

03/14/2014 - 03:28 PM

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Telecom Italia S.p.A. (the Company) hereby announces the results and pricing of its invitation to eligible Noteholders of its €750,000,000 4.75 per cent. Notes due 2014 (the 2014 Notes); €750,000,000 4.625 per cent. Notes due 2015 (the 2015 Notes); €1,000,000,000 5.125 per cent. Notes due 2016 (the January 2016 Notes); and €850,000,000 8.25 per cent. Notes due 2016 (the March 2016 Notes and, together with the 2014 Notes, the 2015 Notes, and the January 2016 Notes, the Notes and each a Series) to tender their Notes for purchase by the Company for cash (such invitations together, the Offers).

The Offers were announced on 7 March 2014 and were made on the terms and subject to the conditions set out in the tender offer memorandum dated 7 March 2014 (the Tender Offer Memorandum). Capitalised terms used in this announcement and not otherwise defined have the meanings ascribed to them in the Tender Offer Memorandum.

As at the Expiration Deadline of 5.00 p.m. (CET) on 13 March 2014, an aggregate nominal amount of €614,939,000 of Notes has been validly tendered in the Offers.

The Company intends to (i) increase the Target Acceptance Amount to €598,919,000 and the March 2016 Notes Target Acceptance Amount to €142,020,000; and (ii) accept for purchase Notes validly tendered pursuant to the Offers as set out below.

The Purchase Price in respect of the 2015 Notes, the January 2016 Notes and the March 2016 Notes accepted for purchase was determined at or around 11.00 a.m. (CET) today in the manner described in the Tender Offer Memorandum by reference to the sum of the relevant Purchase Spread and the relevant Benchmark Rate as follows:

 

 

2014 Notes

 

 

2015 Notes

 

 

January 2016 Notes

 

 

March 2016 Notes

 

ISIN

XS0254905846

XS0794393040

XS0583059448

XS0418508924

Outstanding Nominal Amount

€556,800,000

€750,000,000

€1,000,000,000

€850,000,000

Reference Benchmark

N/A

2015 Notes Interpolated Mid-Swap Rate

January 2016 Notes Interpolated Mid-Swap Rate

March 2016 Notes Interpolated Mid-Swap Rate

Benchmark Rate

N/A

0.416%

0.450%

0.459%

Purchase Spread

N/A

65 bps

105 bps

120 bps

Maximum Purchase Spread

N/A

N/A

N/A

130 bps

Purchase Yield

N/A

1.066%

1.500%

1.659%

Purchase Price

100.7%

104.370%

106.587%

112.913%

Accrued Interest

3.943%

3.497%

0.730%

8.182%

Series Acceptance Amount

€56,150,000

€172,299,000

€228,450,000

€142,020,000

Nominal Amount outstanding after the Settlement Date

€500,650,000

€577,701,000

€771,550,000

€707,980,000

The applicable Purchase Price together with Accrued Interest will be paid to Noteholders whose Notes have been accepted for purchase by the Company. Settlement is expected to occur on 18 March 2014.

BNP Paribas, Commerzbank Aktiengesellschaft and UniCredit Bank AG acted as the Dealer Managers for the Offers and Citibank, N.A., London Branch acted as the Tender Agent.

Questions and requests for assistance in connection with the Offers may be directed to:

SOLE STRUCTURING ADVISOR

 

BNP Paribas

10 Harewood Avenue

London NW1 6AA

United Kingdom

 

Attention: Liability Management Group

Telephone: +44 (0) 20 7595 8668

Email: liability.management@bnpparibas.com

 

THE DEALER MANAGERS

 

BNP Paribas

10 Harewood Avenue

London NW1 6AA

United Kingdom

 

 

Attention: Liability Management Group

Telephone: +44 (0) 20 7595 8668

Email: liability.management@bnpparibas.com

 

Commerzbank Aktiengesellschaft

Mainzer Landstrasse 153

DLZ-Geb. 2, Händlerhaus

60327 Frankfurt am Main

Germany

 

Attention: Liability Management Group

Telephone: +49 69 136 59920

Email: Liability.Management@Commerzbank.com

 

UniCredit Bank AG

Arabellastrasse, 12

81925 Munich

Germany

 

Attention: Debt Capital Markets, Italy; Liability Management

Telephone: +39 02 8862 0581; +49 89 378 17425

Email: dcmitaly@unicredit.eu; corporate.lm@unicredit.de

 

THE TENDER AGENT

Citibank N.A., London Branch

13th Floor

Citigroup Centre

Canary Wharf

London E14 5LB

United Kingdom

 

Telephone: +44 (0)20 7508 3867

Attention: Exchange Team – Agency & Trust

Email: exchange.gats@citi.com

 

Rome, 14 march 2014