Whispers on Wind's €7.3 billion multi-tranche bond deal circulate

By Paul A. Harris

Portland, Ore., Oct. 19 – Initial price guidance on the Wind Tre SpA €7.3 billion equivalent five-part offering of senior secured notes (B1/BB-/BB) circulated the market on Thursday, sources say.

The deal is coming in five benchmark-sized tranches that are whispered as follows:

• Euro-denominated five-year fixed-rate notes whispered in the 3% area;

• Euro-denominated seven-year fixed-rate notes whispered in the 3½% area;

• Dollar-denominated eight-year fixed-rate notes whispered in the low-to-mid 5% area;

• Euro-denominated six-year floating-rate notes whispered at Euribor plus 300 basis points to 325 bps at par; and

• Dollar-denominated five-year floating-rate notes whispered at Libor plus 300 bps to 325 bps at 99.5.

The European roadshow is scheduled to wrap up on Friday.

A roadshow in the United States is set to begin on Monday and run through Wednesday.

Joint global coordinator Deutsche Bank will bill and deliver for the euro-denominated notes.

Joint global coordinator BofA Merrill Lynch will bill and deliver for the dollar-denominated notes.

HSBC is also a joint global coordinator.

Banca IMI, Barclays, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Goldman Sachs, ING, JPMorgan, Mediobanca, Mizuho, MUFG, Natixis, Nomura, SMBC, SG and UniCredit are joint bookrunners.

The Rome-based telecom plans to use the proceeds, along with drawings under its new senior secured credit facilities, and amounts due to Wind Tre upon termination of derivative hedging instruments related to existing debt, to repay certain intercompany loans to Wind Acquisition Finance, which will use the funds to redeem the existing notes, and repay the existing senior credit facilities.

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