By Andrea Heisinger
New York, June 15 - Telecom Italia Capital priced $2 billion of guaranteed senior notes (Baa2/BBB/BBB) in two tranches Monday, market sources said.
The $1 billion of 6.175% five-year notes priced at par to yield 6.175%, or 345 basis points over Treasuries.
The $1 billion of 7.175% 10-year notes priced at par to yield 7.175%, or Treasuries plus 345 bps.
The tranches have a make-whole call at Treasuries plus 50 bps.
Active bookrunners were Goldman Sachs & Co., J.P. Morgan Securities and Morgan Stanley & Co. Passive bookrunners were BNP Paribas Securities, Deutsche Bank Securities, Mitsubishi UFJ Securities.
Proceeds will be used for inter-company loans to Telecom Italia Group companies for general corporate purposes, including repayment of debt.
The notes are guaranteed by Telecom Italia SpA.
The telephone company is based in Rome.
| Issuer: | Telecom Italia Capital
|
| Guarantor: | Telecom Italia SpA
|
| Issue: | Senior notes
|
| Total amount: | $2 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities, Morgan Stanley & Co. (active), BNP Paribas Securities, Deutsche Bank Securities, Mitsubishi UFJ Securities (passive)
|
| Trade date: | June 15
|
| Settlement date: | June 18
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 18, 2014
|
| Coupon: | 6.175%
|
| Price: | Par
|
| Yield: | 6.175%
|
| Spread: | Treasuries plus 345 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 345 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | June 18, 2019
|
| Coupon: | 7.175%
|
| Price: | Par
|
| Yield: | 7.175%
|
| Spread: | Treasuries plus 345 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 345 bps
|
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