22
January
2018
|
18:00
Europe/Amsterdam

PIRELLI: SUCCESSFULLY CONCLUDES LAUNCH OF 5-YEAR BOND ISSUE FOR 600 MILLION EURO

THE ISSUE, WITH A YIELD 110 BASIS POINTS ABOVE THE REFERENCE RATE, WILL OPTIMIZE DEBT LENGTHENING MATURITIES AND REDUCING COSTS

Pirelli today launched and successfully concluded the placement with international institutional investors of an unrated bond loan on the Euromercato for a total nominal amount of 600 million Euro, duration 5 years, at a fixed rate. As evidence of investors’ faith in Pirelli, the loan received at closing total orders of 2.4 billion euro from approximately 280 international investors.

The bond issue – part of the company’s EMTN (Euro Medium Term Note) program already announced to the market on December 21, 2017 – will allow us to optimize the debt, refinance future maturities for a corresponding amount, lengthen average maturities and lower overall cost.

The bond loan has the following characteristics:

  • issuer: Pirelli & C. S.p.A.
  • guarantor: Pirelli Tyre S.p.A.
  • amount: Euro 600 million
  • settlement date: 25 january 2018
  • maturity: 25 january 2023
  • coupon: 1.375%
  • issue price: 99.502%
  • redemption price: 100%

The effective yield at maturity will be 1.479% or 110 basis points higher than the reference rate (mid-swap). The bond will be listed on the Luxembourg stock exchange.