Camfin launches 150 million euro/Pirelli share convertible bond

Cafmin, the holding company which is currently controlling shareholder of Italian tyremaker Pirelli, launched a fixed-rate 150 million euro ($194.14 million) bond on Friday 11 October. The bond is convertible into 5.85 per cent of Pirelli shares.

According to the Reuters news agency, proceeds from the bond will be used to pay 132.4 million euros in debt at Camfin as well as to recapitalize real estate group Prelios. Furthermore the implicit conversion price will reportedly be calculated based on a premium of between 27.5 and 32.5 per cent of the average Pirelli price between the launch of the bond and the setting of final terms. 

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