PIRELLI CONCLUDES 600 MILLION EURO 5-YR BOND LAUNCH SUCCESSFULLY
THE 1.75% COUPON IS THE LOWEST IN PIRELLI’S HISTORY AND FOR AN ITALIAN UNRATED CORPORATE EUROBOND Milan, 13 November 2014 - Pirelli has concluded the placement of an unrated bond issue with international institutional investors on the Euromercato for a total nominal value of 600 million euro. The operation obtained the lowest coupon - 1.75% - in Pirelli’s history, as well as for an Italian unrated corporate Eurobond, demonstrating the confidence investors have in Pirelli’s credit. The loan was placed with over 400 international investors and attracted total orders of approximately 5 billion euro. The placement is part of a series of actions aimed at optimizing the debt structure by lengthening the average debt maturity – which goes from 1.6 years to 2.3 years - and diversifying the source of funding, and also contributes to a lowering the average cost of company debt. The operation is part of the group’s Euro Medium Term Note Programme. The bond issue has the following features:
- issuer: Pirelli International plc
- guarantor: Pirelli Tyre S.p.A.
- amount: 600 million euro
- settlement date: 18 November 2014
- maturity date: 18 November 2019
- coupon: 1.75%
- issue price: 99.498
- redemption price: 100%
The effective yield at maturity will be 1.856% or 145 basis points higher than the reference rate (mid-swap). The bond will be listed on the Luxembourg stock exchange. This announcement (and the information contained therein) does not constitute or form part of any offer to sell or a solicitation of any offer to buy any securities or 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does not constitute an offer of securities for sale in the United States, in Australia, Canada or Japan and is not for publication or distribution in any such jurisdictions.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.