Telecom Italia Gets Extension to $3.9 Billion Revolving Credit
Telecom Italia SpA (TIT), the country’s biggest phone carrier, extended the maturity of 3 billion euros ($3.9 billion) of loans to 2018.
The debt was provided by a group of 30 banks, according to a Milan-based spokesman for Telecom Italia, who asked not to be identified citing company policy. The deal, arranged by Royal Bank of Scotland Group Plc and Banca IMI SpA, attracted 4.1 billion euros of commitments from lenders, the person said.
The forward-start facility, where borrowers lock in financing terms before existing debt matures, extends part of an 8 billion-euro credit line due next year, according to data compiled by Bloomberg. The extended portion pays an initial interest margin of 220 basis points more than the euro interbank offered rate, the data show.
Southern European corporates, including Telefonica SA (TEF) of Spain, Italy’s Enel SpA (ENEL) and EDP-Energias de Portugal SA, have raised more than 15 billion euros of forward-start loans this year, according to Bloomberg data.
Telecom Italia extended 4 billion euros of the same loan last year in another forward-start deal, which pays an interest rate of 250 basis points more than benchmarks, the data show. A basis point is 0.01 percentage point. Banca IMI is Intesa Sanpaolo SpA’s investment banking unit.
To contact the reporter on this story: Stephen Morris in London at email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org