Telecom Italia (TI) is planning to issue new bonds and use part of the proceeds to buy back older notes in order to refinance its debt.
The offering under its €20bn euro medium term note programme and the subsequent notes repurchase will allow the…
Telecom Italia (TI) is planning to issue new bonds and use part of the proceeds to buy back older notes in order to refinance its debt.
The offering under its €20bn euro medium term note programme and the subsequent notes repurchase will allow the Italian incumbent to refinance its debt maturities in advance, take advantage of current favourable market conditions and lengthen its debt maturity profile, the company said in a statement.
The notes which TI is looking to repurchase consist of €750m-worth of notes due 2015; €1bn notes maturing in 2016; €1bn notes due in January 2017; and September 2017 €1bn notes.
The company has set the repurchase price for the 2015 notes at 101.65, while the others prices will be announced on 21 January.
Societe Generale acted as sole restructuring adviser and global coordinator on the offering, as well as dealer manager alongside BNP Paribas and Credit Agricole.
TI has been struggling to reduce its debt burden, which stood at approximately €28bn as of 30 September 2014.
Domestically, it is looking to acquire a stake in optic fibre operator Metroweb, as part of a plan to upgrade its broadband network. The company also plans to raise cash by selling its tower assets.
Last November, it completed the sale of 6,481 Brazilian telecoms towers to American Tower for about R$3bn (US$1.2bn).
Also in Brazil, TI is currently evaluating a potential tie-up between its local subsidiary TIM Brazil and rival Oi.
