Telecom Italia sets size of tender offer for notes at €600 million

New York, Jan. 13 – Telecom Italia SpA said that the maximum acceptance amount in its tender offer for four series of notes will be €600 million.

The announcement follows the pricing of an offering of €1 billion of new 3¼% notes on Monday.

As previously disclosed, the company will accept for purchase an aggregate maximum tender amount of the following four series, listed with their outstanding amounts and expected purchase prices:

• €577,701,000 of its 4 5/8% notes due 2015 at a price of 101.65;

• €771.55 million of its 5 1/8% notes due 2016 at a price based on the interpolated mid-swap rate plus 35 basis points;

• €1 billion of its 7% notes due January 2017 at a price based on the interpolated mid-swap rate plus 88 bps; and

• €1 billion of its 4½% notes due September 2017 at a price based on the interpolated mid-swap rate plus 110 bps.

The allocation of the amount accepted for purchase between the four series will be announced at pricing, which is scheduled for 5 a.m. ET on Jan. 21.

The company will also pay accrued interest. Settlement is expected Jan. 23.

The tender offer expires at 11 a.m. ET on Jan. 20.

The company will use a portion of the proceeds of a new series of euro-denominated notes issued under its €20 billion euro medium-term note program to fund the tender offer, which will allow it to refinance debt maturities in advance, take advantage of current favorable market conditions, lengthen its debt maturity profile and provide a degree of liquidity to noteholders, according to the announcement.

Societe Generale (44 20 7676 7579, attn: liability management – DCM, or liability.management@sgcib.com) is the sole structuring adviser and global coordinator. BNP Paribas (44 20 7595 8668, attn: liability management group, or liability.management@bnpparibas.com), Credit Agricole CIB (44 207 214 7440, attn: Cyril Chatelain, or liability.management@ca-cib.com) and Societe Generale are the dealer managers. Lucid Issuer Services Ltd. (44 20 7704 0880, attn: Paul Kamminga, or telecomitalia@lucid-is.com) is the tender agent.

Telecom Italia is a Rome-based telecommunications company.

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