Telecom Italia is said to have signed an agreement for a €3bn forward-start facility to refinance existing debt, having secured commitments from 30 banks.
Banca IMI and RBS are global coordinators for the loan, which was “significantly”…
Telecom Italia is said to have signed an agreement for a €3bn forward-start facility to refinance existing debt, having secured commitments from 30 banks.
Banca IMI and RBS are global coordinators for the loan, which was “significantly” oversubscribed, according to a person close to the deal. Syndication began in February and the resulting agreement was signed yesterday afternoon.
Fifteen banks including Banca IMI and RBS acted as bookrunners for the deal, five as mandated lead arrangers and 10 as lead arrangers, the person said.
The loan will be used to extend the maturity of part of an €8bn facility, secured in 2005, when it matures in August 2014. Last May, Telecom Italia refinanced a €4bn tranche, which now expires in 2017.
The Italian incumbent, which reported net financial debt of €28.3bn at the end of 2012 in its preliminary results, aims to cut its debt pile to €27bn by the end of 2013.
In early February, the telco announced it would launch a hybrid subordinated debt securities programme of up to €3bn over 18 to 24 months. In mid-March, the company priced a 60-year €750m hybrid bond as part of the programme.
The company is rated Baa3 by Moody’s and BBB by Standard & Poor’s.
