Telecom Italia (TI) has announced the final pricing for its fixed-rate €1.3bn (US$1.75bn) mandatory convertible bonds due November 2016.
The minimum price to convert the bonds into ordinary shares has been set at €0.6801, equal to the…
Telecom Italia (TI) has announced the final pricing for its fixed-rate €1.3bn (US$1.75bn) mandatory convertible bonds due November 2016.
The minimum price to convert the bonds into ordinary shares has been set at €0.6801, equal to the volume-weighted average trading price of TI shares on 8 November, the operator said in a statement.
The maximum conversion price has been set at €0.8331 – 122.5% of the minimum price.
TI launched the bond, which carries a 6.125% coupon, last week. It forms part of a new, three-year strategic plan to raise up to €4bn (US$5.3bn) to improve its balance sheet and better position itself for future growth.
Settlement of the bond issue is expected to take place on 15 November and an application to trade them on a yet-to-be-determined international stock exchange will be made by 15 March 2014.
Proceeds of the bonds, issued by subsidiary Telecom Italia Finance and guaranteed by the parent company, are to be used for general corporate purposes.
For the first nine months of this year, TI reported revenues of €20.39bn, down 2.1% year-on-year. EBITDA for the same period stood at €7.93bn, down 6.9% on the Q3 2012 result. Net debt at the end of September totalled €28.23bn.
