Telecom Italia Starts Debt Exchange With €5 Billion Notes

A Telecom Italia SpA store in Milan.

Photographer: Francesca Volpi/Bloomberg
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Telecom Italia SpA has started an offer to move some of its euro and dollar denominated bonds to the unit that’s set to buy the firm’s network.

The Italian carrier is invitingBloomberg Terminal holders of €5 billion ($5.3 billion) worth of notes to swap them for new securities with the same terms that will sit under the new grid company that will be controlled by KKR & Co Inc., Telecom Italia said in a statementBloomberg Terminal on Thursday. The notes will be mandatorily exchanged if the sale of the grid is completed by Oct. 15.