Pirelli concludes 600 million euro bond issue

Pirelli & C. S.p.A. reports that it yesterday launched and successfully concluded the placement of a 600 million euro bond loan. Placed with international institutional investors, the unrated bond loan has a five-year duration at a fixed rate. The tyre maker reports that at closing, the loan received total orders of 2.4 billion euros from approximately 280 international investors. The bond issue was made as part of Pirelli’s EMTN (Euro Medium Term Note) programme, which was announced on 21 December 2017, and the company intends to use it to optimise 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 per cent or 110 basis points higher than the reference rate (mid-swap). The bond will be listed on the Luxembourg stock exchange.