Telecom Italia (TI) has priced €1bn (US$1.36bn) of new 7-year senior notes under its EMTN programme.
The notes, to be listed on the Luxembourg Stock Exchange, carry a coupon of 4.5% and priced at 99.447 to yield 4.594%. The new debt is rated Ba1 by…
Telecom Italia (TI) has priced €1bn (US$1.36bn) of new 7-year senior notes under its EMTN programme.
The notes, to be listed on the Luxembourg Stock Exchange, carry a coupon of 4.5% and priced at 99.447 to yield 4.594%. The new debt is rated Ba1 by Moody’s.
Barclays, Credit Agricole, Goldman Sachs, Societe Generale, BofA Merrill Lynch, HSBC, ING and Natixis were joint lead managers on the issuance.
Proceeds are to be used to refinance maturing debt. The company has two bonds maturing in the first half of this year: €284.1m of 7.875% 5-year notes due on 22 January and €556.8m of 4.75% 8-year notes due 19 May.
For the first half of 2013, TI had total gross debt of €37.97bn, €25.36bn of which were bonds.
TI’s revenues and EBITDA have suffered from a fragile domestic market and a reduction in the economic growth in Latin American countries. One of the company’s strategic objectives to counter this is to de-lever.
In November 2013, the TI board approved a three-year strategic plan designed to raise up to €4bn (US$5.3bn) through a €1.3bn convertible bond issue and asset sales in order to improve its balance sheet.
The 6.125% 3-year convertible bond was issued shortly afterwards by subsidiary Telecom Italia Finance.
TI to consider future of TIM Brasil
Telecom Italia has announced that it will proceed with an in-depth analysis of its Brazilian business, supported by the subsidiary’s chief executive Rodrigo Abreu.
Following a meeting of the TI board of directors, the company stated that it will examine its 67% stake in Tim Brasil at a meeting on 6 February.
However, it added that at present it has not held any negotiations or had any offers for the Brazilian assets.
