Telecom Italia’s parent company Telco is considering how best to refinance its debt, with one option – reportedly the favoured – being to issue a bond for up to €3.4bn.
TelecomFinance understands that issuing a bond to be subscribed by Telco…
Telecom Italia’s parent company Telco is considering how best to refinance its debt, with one option – reportedly the favoured – being to issue a bond for up to €3.4bn.
TelecomFinance understands that issuing a bond to be subscribed by Telco shareholders is seen as one out of several possibilities, but that no decision has been made at this point of time.
Spokespeople for Telco refused to comment.
An earlier Reuters report quoted a source close to the matter as saying Telco, which holds a 22.4% stake in the Italian incumbent, is leaning toward the bond option, given the high cost of debt in the current market.
An earlier Dow Jones report citing Italian newspaper Il Messaggero stated Telco would issue a bond by February in an effort to repay €3.4bn worth of debt which expires in October. The newspaper did not reveal its sources.
According to the Dow Jones report, the bond would be subscribed by Telco shareholders. It stated shareholders such as Telefonica would take up €1.57bn of the bond, Assicurazioni Generali would take up €1.04bn and Mediobanca and Intesa Sanpaola would each take up €394m.
