Italgas Spa yesterday successfully concluded the launch on the market of its first bond issue divided into two tranches, for 5 years and 10 years at a fixed rate, each of 750 million euro. The placement, aimed at institutional investors, recorded a demand of 4,5 billion euro, equal to three times the offer. The bonds will be listed on the Luxembourg Stock Exchange.
"I am very satisfied with the important result obtained with this first bond placement, both for the significant amount raised and for the conditions obtained - commented the Italgas Chief Executive Officer Paolo Gallo - The operation represents an important step in line with the strategy presented to the financial community and allows us to extend the average maturity of the debt thus consolidating the financial structure at an average cost in line with our expectations".
Here are the details of the operation:
Tranche at 5 years
Amount: 750 million euros
Deadline: January 19, 2022
Annual coupon of 0,50% with a re-offer price of 99,123% (corresponding to a spread of 60 basis points on the reference mid swap rate).
Tranche at 10 years
Amount: 750 million euros
Deadline: January 19, 2027
Annual coupon of 1,625% with a re-offer price of 99,170% (corresponding to a spread of 105 basis points on the reference mid swap rate).
TELECOM ITALY
Telecom Italia yesterday also successfully placed a bond issue intended for institutional investors. The bonds are at a fixed rate and the amount placed is one billion. The yield is lower than initially indicated to the market: the coupon, at 2,5%, is the lowest ever among non-convertible euro bonds issued by the group and remains largely lower than the average cost of debt, which stood at 5,1% last September. The securities will be listed on the Luxembourg Stock Exchange.
Here are the placement details
Issuer: Telecom Italia SpA
Amount: 1 billion Euros
Settlement date: January 19, 2017
Deadline: July 19, 2023
Coupon: 2,500%
Issue price: 99,288%
Redemption Price: 100,000%
Effective yield to maturity: 2,622%, corresponding to a yield of 237 basis points above the reference rate (mid swap).
PRYSMIAN
Finally, Prysmian also concluded yesterday the placement of a bond with a nominal value of 500 million euro. The bonds will have a duration of five years and will be of the "zero coupon" type. The initial conversion price is equal to 34,2949 euros and was fixed by applying a premium of 41,25% over the weighted average price of the company's ordinary shares.
The bonds will be convertible into ordinary shares of the company subject to approval by the extraordinary shareholders' meeting to be held by 30 June 2017.
“We have successfully closed an important transaction which allows us to carry out a significant share buyback programme, while at the same time maintaining the necessary flexibility to address any external growth opportunities – comments Prysmian Chief Financial Officer Pier Francesco Facchini – The terms of the transaction are extremely competitive, bearing witness to the strength that Prysmian's equity story continues to have even in a macroeconomic scenario of great volatility”.
