Wind launches upsized €7.33 billion equivalent notes, drops dollar floaters; pricing Tuesday

By Paul A. Harris

Portland, Ore., Oct. 24 – Wind Tre SpA launched an upsized €7,325,000,000 equivalent offering senior secured notes (B1/BB-/BB) in a revised four-part offering from which a proposed dollar-denominated tranche of floating-rate notes has been withdrawn, according to a market source.

The deal, which is upsized from €7.3 billion, is set to price on Tuesday. Books were scheduled to close at 10:45 a.m. ET on Tuesday.

All four remaining tranches launched tight to talk at the following terms:

• €1,625,000,000 of fixed-rate notes due January 2023, non-callable for two years, launched at 2 5/8%. Price talk was in the 2¾% area. Initial guidance was in the 3% area;

• €1.75 billion of fixed-rate notes due January 2025, non-callable for three years, launched at 3 1/8%. Price talk was in the 3¼% area. Initial guidance was in the 3½% area;

• $2 billion of fixed-rate notes due January 2026, non-callable for three years, launched at 5%. Price talk was in the 5¼% area. Initial guidance was in the low-to-mid 5% area;

• €2.25 billion of floating-rate notes due January 2024, non-callable for six months, launched with a 275 basis points spread to Euribor at par. Price talk was Euribor plus 275 bps to 300 bps at par. Initial guidance Euribor plus 300 bps to 325 bps at par.

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. The additional proceeds resulting from the €25 million upsizing of the deal will be used to put cash on the balance sheet.

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