Fitch has assigned Italian telco Wind Telecomunicazioni’s €575m dual-tranche bond issue final BB ratings.
The issue consists of a fixed-rate US$550m tranche due 2020 with a 6.5% coupon and a €150m tranche due 2019 with a rate of 525 basis points…
Fitch has assigned Italian telco Wind Telecomunicazioni’s €575m dual-tranche bond issue final BB ratings.
The issue consists of a fixed-rate US$550m tranche due 2020 with a 6.5% coupon and a €150m tranche due 2019 with a rate of 525 basis points over Euribor.
Banca IMI, BNP Paribas, Societe Generale, UBS and Unicredit were joint bookrunners for the transaction, upsized from an initially-targeted €500m.
Fitch said the notes rank on par with the telco’s other senior-secured obligations, including bank debt and 2018 senior-secured notes.
Before issuing the new notes, VimpelCom-owned Wind prepaid senior-secured bank debt due to mature in 2014 and 2015, thereby extending its debt maturity while ensuring its ratio of secured and unsecured debt remains the same, the agency said.
Most of Wind’s current debt matures in 2017. Fitch noted that the company, which it has rated B+, does not face any material financing risks before then.
The agency said Wind’s credit profile is supported by its established position as Italy’s number three mobile operator and expanding fixed-line/broadband business. The company also benefits from potential support from VimpelCom, the agency said.
