By Rebecca Melvin
New York, March 20 – Telecom Italia SpA priced €2 billion of seven-year unsecured equity-linked bonds at par of €100,000 to yield 1.125% with an initial conversion premium of 70% over the volume-weighted average price of shares on the Milan exchange between launch and pricing, according to a release.
The Regulation S deal, which included a €500 million increase option, came at the middle of the 0.875% to 1.375% coupon talk and at the talked premium point.
BNP Paribas and J.P. Morgan were bookrunners and joint global coordinators of the deal, and Barclays, Citigroup Global Markets Inc., Credit Suisse and Unicredit were also bookrunners.
The bonds are non-callable for four years until April 16, 2019, and then provisionally callable if the stock price exceeds 130% of the conversion price. There is also a cleanup call if only 15% or less of the bonds remain outstanding.
Proceeds will be used to pre-fund a recently announced capital expenditure plan.
The company is applying to list the bonds on an internationally recognized stock exchange.
Telecom Italia is a Rome-based telecommunications company.
| Issuer: | Telecom Italia SpA
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| Issue: | Unsecured equity-linked bonds
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| Amount: | €2 billion
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| Maturity: | March 26, 2022
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| Bookrunners: | BNP Paribas, J.P. Morgan, Barclays Citigroup Global Markets Inc., Credit Suisse and Unicredit
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| Coupon: | 1.125%
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| Price: | Par of €100,000
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| Yield: | 1.125%
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| Conversion premium: | 70%
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| Calls: | Non-callable for four years until April 16, 2019, then provisionally callable subject to a 130% price hurdle
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| Price talk: | 0.875%-1.375%, up 70%
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| Pricing date: | March 20
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| Settlement date: | March 26
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| Stock symbol: | NYSE ADR: TI
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| Distribution: | Regulation S
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