Wind Tre sets talk in €7.3 billion equivalent five-par secured notes offering; pricing Tuesday

By Paul A. Harris

Portland, Ore., Oct. 23 – Wind Tre SpA set price talk in its €7.3 billion equivalent offering senior secured notes (B1/BB-/BB), coming in five benchmark-sized tranches, according to a market source.

Official talk sees all five tranches coming tight to or inside of initial guidance as follows:

• Euro-denominated fixed-rate notes due January 2023 are talked to yield in the 2¾% area; initial guidance was in the 3% area. The five-year notes come with two years of call protection;

• Euro-denominated fixed-notes notes due January 2025 are talked to yield in the 3¼% area; initial guidance was in the 3½% area. The seven-year notes come with three years of call protection;

• Euro-denominated floating-rate notes due January 2024 are talked at par with a 275 basis points to 300 bps spread to Euribor. Initial guidance was Euribor plus 300 bps to 325 bps at par. The six-year floaters come with one year of call protection;

• Dollar-denominated fixed-rate notes due January 2026 are talked to yield in the 5¼% area. Initial talk was in the low-to-mid 5% area. The eight-year notes come with three years of call protection; and

• Dollar-denominated floating-rate notes due January 2023 are talked at 99.5 to par with a 300 bps spread to Libor. Initial talk was Libor plus 300 bps to 325 bps at 99.5. The five-year floaters come with one year of call protection.

Tranche sizes remain to be determined.

The deal is expected to price on Tuesday.

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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