MILAN, Italy (Nov. 30, 2010) — Pirelli & C. S.p.A. has secured a five-year revolving line of credit worth $1.57 billion to replace existing lines of credit worth $1.83 billion launched in 2005 and 2007 with maturities in 2011 and 2012.
Pirelli said a 2015 maturity is aligned with the timing of its recently presented industrial plan, and underwriting this new contract is one of the actions it's taking to optimize debt structure by lengthening average duration and diversifying sources of funding.
The financing contract was underwritten with 12 primary national and international institutions: Bank of America Corp./Merrill Lynch & Co. Inc.; Barclays Bank P.L.C.; BNP Paribas; Commerzbank A.G.; HSBC Group; Intesa Sanpaolo S.p.A.; Mediobanca S.p.A.; Mizuho Bank Ltd.; SociÃ&Copy;tÃ&Copy; GÃ&Copy;nÃ&Copy;rale S.A.; Bank of Tokyo-Mitsubishi UFJ Ltd.; Royal Bank of Scotland P.L.C.; and UniCredit S.p.A. in equal shares.
The financing, which is floating rate, will have an initial interest rate of Euribor plus 110 basis points.