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 a Euro 750 million fixed rate bond issue offered to institutional investors.
The wide range of investors participating in the transaction confirms the market positive attitude towards Telecom Italia’s credit.
This issue positively contributes to lower Telecom Italia’s average cost of debt – which as of March 31st, 2011 stood at 5.4% - and the proceeds will be used to refinance maturing debt.
Issuer: Telecom Italia S.p.A.
Amount: Euro 750 million
Settlement date: 25 May 2011
Maturity: 25 May 2018
Issue price: 99.889%
Redemption price: 100%
The effective yield to maturity is 4.769% per year, which corresponds to a yield of 162 basis points above the reference rate (mid – swap).
The notes will be issued under the Group’s Euro 20 billion EMTN Programme and will be listed on the Luxembourg Stock Exchange.
Milan, 18 May 2011