Pirelli concludes 500 million euro, 5 Year bond issue
PRESS RELEASE NOT TO BE PUBLISHED OR DISTRIBUTED IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN PIRELLI CONCLUDES 500 MILLION EURO, 5-YEAR BOND ISSUE TOTAL BIDS RECEIVED MORE THAN 9 TIMES GREATER THAN OFFERING
Pirelli & C. S.p.A. today successfully concluded the placement of a fixed-rate, unrated bond issue worth a nominal 500 million euros on the Eurobond market. The offering, to international institutional investors, was positively received and more than 9 times oversubscribed, attracting total bids in excess of 4.5 billion euros. Over 93% was placed with investors outside Italy. The bond issue, executed in accordance with decisions taken by the Board of Directors of Pirelli & C. on 29 July 2010, is one of a number of actions aimed at optimizing the group’s debt structure by lengthening its average duration and diversifying funding sources. The notes have the following characteristics:
- issuer: Pirelli & C S.p.A.
- guarantor: Pirelli Tyre S.p.A.
- amount: € 500 million
- settlement date: 22 February 2011
- maturity date: 22 February 2016
- coupon: 5.125%
- issue price: 99.626%
- redemption price: 100%
- minimum denomination: € 100,000 and additional multiples of € 1,000
The effective yield at maturity is 5.212%, which corresponds to a yield of 230 basis points above the reference rate (mid swap). The notes will be listed on the Luxembourg Stock Exchange. The placement was managed by Barclays Capital, acting as global coordinator, Banca IMI, Mediobanca, SG CIB and Unicredit as joint bookrunners. This announcement (and the information contained therein) does not constitute or form part of any offer to sell nor a solicitation of any offer to buy any securities nor shall there be any offer of securities in any jurisdiction in which such offer or sale would be unlawful. It may be unlawful to distribute this announcement in certain jurisdictions. This announcement does not constitute an offer of securities for sale in the United States, in Australia, Canada or Japan and is not for publication or distribution in any such jurisdictions. The securities referred to in this announcement have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This announcement is not a public offer of financial products in Italy as per Article 1, para. 1, letter. t) of Legislative Decree no. 58 of February 24, 1998. The documentation relating to the offer will not be submitted to the approval of CONSOB. PDF Version (73 KB)