By Marisa Wong
Madison, Wis., Nov. 8 - Telecom Italia SpA subsidiary Telecom Italia Finance SA priced €1.3 billion of 6.125% fixed-rate guaranteed mandatory convertible bonds due 2016 at par with an initial conversion premium of 22.5%, according to a news release early on Friday.
The company announced later in the day that the maximum conversion price has been set at €0.8331, which is a 22.5% premium over the €0.6801 volume-weighted average price of the company's stock between the open and close of Borsa Italiana on Friday.
The company announced on Thursday that it planned to price up to €1.3 billion of convertibles to yield 5.75% to 6.5% with an initial conversion premium of 20% to 25%.
The Regulation S bonds are expected to settle Nov. 15.
Proceeds will be used for general corporate purposes.
The notes are guaranteed by Telecom Italia, a telecommunications company based in Rome.
| Issuer: | Telecom Italia Finance SA
|
| Guarantor: | Telecom Italia SpA
|
| Issue: | Fixed-rate guaranteed mandatory convertible bonds
|
| Amount: | €1.3 billion
|
| Maturity: | November 2016
|
| Coupon: | 6.125%
|
| Price: | Par of €100,000
|
| Yield: | 6.125%
|
| Conversion premium: | 22.5%
|
| Maximum conversion price: | €0.8331
|
| Price talk: | 5.75%-6.5%, up 20% to 25%
|
| Distribution: | Regulation S
|
| Announcement date: | Nov. 7
|
| Pricing date: | Nov. 8
|
| Settlement date: | Nov. 15
|
| Stock symbol: | Borsa Italiana: TIT
|
| Stock price: | €0.72 at close Nov. 7
|
| Market capitalization: | €12.27 billion
|
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