Telecom Italia successfully completes the launch of a 12 year bond for 1,250 mln Euro

02/03/2010 - 08:27 PM

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The amount and quality of the orders allowed the raising of funds at a lower cost vis-à-vis initial guidance.

The Securities referred to in this press release have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.


 

Telecom Italia successfully completed the launch of a fixed rate bond issue for Euro 1,250 million reserved for institutional investors.

This issue is part of the process of refinancing maturing debt.

A wide range of investors across Europe participated in the transaction, confirming the market’s positive attitude towards Telecom Italia’s credit, as well as the ability of the Group to access long term refinancing while improving its current average cost of debt.

Details are:

Issuer: Telecom Italia S.p.A.

Amount: Euro 1,250 million

Settlement date: 10 February 2010

Maturity: 10 February 2022

Coupon: 5.25%

Issue price: 99.295%

Redemption price: 100%

The effective yield to maturity is 5.331% per year, which corresponds to a yield of 173 basis points above the reference rate (mid – swap).

The notes will be issued under the Group’s Euro 15 billion EMTN Programme and will be listed on the Luxembourg Stock Exchange.

 

Milan, 3 February 2010