The operation contributes to the reduction of the average cost of Group debt
The issue was a private placement
Telecom Italia today successfully closed a 750 million euro floating rate bond issue with maturity in June 2008.
With this new operation, Telecom Italia continues the process of refinancing maturing debt while reducing its average cost.
The terms of the issue are as follows:
• issuer: Telecom Italia S.p.A.
• amount: 750 million euro
• issue date: 9 June 2006
• maturity: 9 June 2008
• duration: 2 years
• coupon: Euribor +0.22% payable quarterly
• issue price: 100%
• effective yield at maturity: Euribor 3 month +0.22%
The operation, made as a private placement with Société Générale, is part of Telecom Italia’s 15 billion euro Euro Medium Term Note (EMTN) programme.
The issue will be quoted 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, 31 May 2006