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Telecom Italia shareholder refinances debt
12 January 2010
The company that holds a dominant 22.5% of Telecom Italia is refinancing $3.77 billion of its debt via bond and loan deals
Telco, the holding company which has a 22.5% stake in Telecom Italia, has signed a bond and loan deal for refinancing $3.77 billion of its maturing debt.
The deal includes a $1.88 billion loan, maturing on May 31 2012 and a $1.88 billion bond issue, to be subscribed by all shareholders pro rata to their interests in Telco by March 25 2010.
The $1.88 billion loan will be provided by Intesa Sanpaolo, Mediobanca, UniCredit and Société Générale. Telco’s investors will get a call option over Telecom Italia’s shares.
Telco had a $1.59 billion financing, which expired at the end of 2009 and a credit line of up to $3.47 billion from Italian bank, UniCredit. Telco’s owners include Spain’s Telefonica, Intesa Sanpaolo and Mediobanca, and insurer, Assicurazioni Generali. GTB