Telecom Italia today announces that next week the Company will undertake a roadshow to present to the European financial community its plans to issue shortly a eurobond in an amount of approximately EUR 5 billion in the near future.
The eurobond will be issued under the USD 10 billion Global Medium Term Note program (the "GMTN Program"), approved by the Company´s Board of Directors and first announced to the market last October and first utilized in January with the issuance of Euro 2 billion 5 year notes exchangeable into TIM and SEAT Pagine Gialle ordinary shares.
The proceeds of the eurobond issue will be utilized to refinance existing short-term facilities, and will therefore not result in additional net, new indebtedness.
The issue will be the first straight debt obligation issued by the Company, which has, heretofore, relied primarily on bank financing. The transaction is part of Telecom Italia´s strategy to lengthen the maturity and diversify of the investor base.
JPMorgan, Lehman Brothers and Morgan Stanley Dean Witter will be joint bookrunning lead managers of the proposed Eurobond and are co-arrangers of the GMTN Program.