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. This announcement shall not constitute an offer to sell nor a solicitation of an offer to buy these securities.
Telecom Italia successfully issued a Euro 750 million fixed rate bond offered to institutional investors, opening 2016 Italian corporate bond issuers’ market.
The great quality and amount of the orders received once again confirms the market’s positive attitude towards Telecom Italia’s credit, allowing the company to price the issue with a coupon of 3.625%, the second lowest amongst the outstanding bonds under the Group’s EMTN Programme, with a yield lower than initial guidance.
The yield of the bond, equal to 3.679%, is largely below the Group’s average cost of debt (5.3% at the end of September 2015).
The proceeds of the new issue will be used to refinance maturing debt.
Issuer: Telecom Italia S.p.A.
Amount: Euro 750 million
Settlement date: 20 January 2016
Maturity: 19 January 2024
Issue price: 99.632%
Redemption price: 100%
The actual yield to maturity of 3.679%, corresponds to a yield of 305 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, 13 gennaio 2016