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Telecom Italia to raise €1.25bn in debt
04 February 2010
Telecom Italia, subject of talks by the Italian government on a Telefónica takeover, is to raise a further $1.25 billion of debt
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Telecom Italia
Telefónica
debt
Bank of America Merrill Lynch
Deutsche Bank
Société Générale
Telecom Italia is raising €1.25 billion through a bond issue. The phone company has appointed Bank of America Merrill Lynch, Deutsche Bank and Société Générale to run the 12-year benchmark offering.
The bonds, which are maturing February 10 2022, are being sold under the issuer’s euro medium-term-note programme. The offering will yield 175 basis points over the benchmark swap rate.
Meanwhile the Italian government is said to be in talks with Telecom Italia over a potential Telefónica takeover. A combined entity will enable Telecom Italia to reduce its debt of about €35 billion and give Telefónica a stronger presence in Europe and Latin America.
Telecom Italia last sold bonds in June 2009 by issuing €1.44 billion of five and 10-year notes. The company has €989 million of floating-rate debt due for maturity in June this year. GTB