Pirelli started and successfully completed, on Monday 22 January, the placement with international institutional investors of an unrated bond, on the Euromarket for a
total nominal amount equal to 600 million di Euro, duration 5 years, at a fixed rate.
At closing, the loan had an order intake of 2,4 billion euro from approximately 280 international investors.
The bond issue – under the company's EMTN (Euro Medium Term Note) programme
– makes it possible to optimize debt, refinancing future maturities for a corresponding amount, lengthening its average duration and lowering its overall cost.
Here are the details of the bond loan features:
- issuer: Pirelli & CSpA
- guarantor: Pirelli Tire SpA
- amount: Euro 600 million
- settlement date: January 25, 2018
- expiration date: January 25, 2023
- coupon: 1,375%
- issue price: 99,502%
- redemption price: 100&
The effective yield to maturity is 1,479%, corresponding to a yield of 110 basis points
above the reference rate (mid swap). The securities will be listed on the Luxembourg Stock Exchange.
