Telecom Italia issues a 10-year bond for 1.5 billion USD. The company returns to the US debt capital markets after 5 year absence

05/22/2014 - 10:44 PM

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The transaction lengthens Telecom Italia’s  average debt maturity and further diversifies its investor base

THE SECURITIES REFERRED TO IN THIS RELEASE HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (the “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

This press release does not constitute an offer to sell or the solicitation to invest in, nor shall there be any sale of, securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Telecom Italia S.p.A. (Telecom Italia) successfully issued USD 1.5 billion fixed rate senior notes offered to institutional investors, obtaining better terms compared to an issue with the same maturity in the Euro market.

The issue marks the return of Telecom Italia to the US capital markets after an absence of 5 years,  lengthens the  average debt maturity and further diversifies its investor base.

The proceeds of this issue will be used for general corporate purposes, which may include the refinancing of maturing debt.

Details are:
Issuer: Telecom Italia S.p.A.
Amount: USD 1.5 billion
Settlement date: 30 May 2014
Maturity: 30 May 2024
Coupon: 5.303%
Issue price: 100%
Redemption price at maturity: 100%
The actual yield to maturity of 5.303%, corresponds to a yield of 275 basis points above corresponding US Treasury bond.

The notes will be issued pursuant to Rule 144A of the Securities Act and an application will be made for the notes to be listed on the Irish Stock Exchange.

Milan, 22 May 2014