Telecom Italia has priced a €1bn five-year eurobond.
The eurobond carries a coupon of 4.5% and matures on 20 September 2017. It priced at 99.693% with a yield to maturity of 4.57%, equal to a yield of 355 basis points above the mid-swap…
Telecom Italia has priced a €1bn five-year eurobond.
The eurobond carries a coupon of 4.5% and matures on 20 September 2017. It priced at 99.693% with a yield to maturity of 4.57%, equal to a yield of 355 basis points above the mid-swap rate.
Initially, TI planned a €500m eurobond to yield about 375 basis points over mid-swaps, but decided to upsize the offering when order books totalled more than €5bn at closing, Reuters reported, citing sources close to the deal.
Banco Bilbao Vizcaya Argentaria (BBVA), Deutsche Bank, HSBC, ING, Natixis and Mitsubishi UFJ Securities acted as lead managers for the transaction.
In June, Telecom Italia issued a two-tranche eurobond to institutional investors for €1.5bn. The offering consisted of a €750m three-year tranche with a coupon of 4.625% and a €750m six-and-a-half-year tranche with a coupon of 6.125%.
The three-year tranche, set to mature on 15 June 2015, priced at 99.685% to yield 4.74%, equal to a spread of 378 basis points above mid-swaps.
The six-and-a-half-year tranche, to mature on 14 December 2018, priced at 99.737% to yield 6.184%, equal to a spread of 473 basis points above mid-swaps.
