The transaction is aimed at the full repurchase, and subsequent cancellation, of the 250 million euro Telecom Italia Finance bond issue maturing 2032
The transaction will allow Telecom Italia to further rationalize its debt portfolio, eliminating a substantially illiquid loan, and achieve a slight maturity lengthening
Telecom Italia Finance S.A. will issue an additional 250 million euro of its 7.75% bond, maturing 2033 and listed on the Luxembourg stock exchange, raising the amount of the issue from the original 800 million euro to a total of 1,050 million euro. Forty days after the issue date, the newly issued bonds will all be fungible with those already outstanding.
The tap issue will be placed with a single investor and is aimed at the full repurchase by Telecom Italia Finance from the same investor of the 250 million euro Telecom Italia Finance 7.77% loan, maturing 2032. The repurchased bonds will subsequently be cancelled.
The transaction will allow Telecom Italia to further rationalize its debt portfolio - eliminating a bond issue that is substantially illiquid due to its small size and placement with a single investor, and also achieve a slight maturity lengthening.
The issue is part of Telecom Italia and Telecom Italia Finance’s Euro Medium Term Note (EMTN) programme, of a total value of 10 billion euro, and was arranged with the support of Goldman Sachs acting as Sole Arranger.
The issue will be listed on the Luxembourg stock exchange.
The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Milan, 22 June 2005