On November 15, the outstanding bonds of the 1,3 billion Guarantees Subordinated Mandatory Convertible Bonds due 2016 issued by Telecom Italia will be converted on the basis of the final conversion ratio into shares representing 11,2% of the company's ordinary capital or 8% of the fully diluted one. The conversion price into shares will be 0,7634 euros. With the operation, Telecom's debt will drop by 1,3 billion compared to the level of 25,4 billion indicated at the end of September in the accounts for the first nine months. Based on the terms and conditions of the loan, the group's note explains, 1.697.347.925 new shares will be attributed to bond holders who have delivered the conversion communication and 5.502.787 new shares in relation to bonds for which it has not been delivered conversion communication.
In this case, Telecom has appointed Bnp Paribas as Relevant Person and Conv-Ex Advisors Limited as financial advisor for the purposes of the sale of the New Shares attributed to the Relevant Person. The net proceeds from the sale of these New Shares will be transferred, as provided for by the Conditions, to the Trustee or to the person indicated by the Trustee and held by him in escrow to be transferred to the holders of the Bonds pursuant to the Conditions.
