Debt

    1. Debt




      1. On 28th July, Pirelli refinanced its committed credit lines and Marco Polo indebtedness for a total amount up to € 6.4 billion as described in the Credit Facility section of this website.
        As a consequence of the above, all previous committed credit facilities have been cancelled.

    1. Debt Structure

      1. Pirelli Gross Debt (pro-forma*) as of September 30, 2016 is worth 6,820 million euros.



          €/mln Total   Nun-Current   Current
        Debt Capital Markets 605   600   5
        Borrowings from banks 5,957   5,349   609
        Borrowing from other financial institutions 24   2   23
        Finance lease payables 0   0   0
        Financial accrued liabilities and deferred income 29   0   29
        Other financial payables 8   1   7
          6,624   5,951   673  
           
         

        Gross Debt composition by:





    1. Credit Facilities

      1. On 28th July, Pirelli closed a 6.4 billion euro debt refinancing with a pool of 19 primary Italian and international banks, which include both term loan facilities and revolving credit facility for a total amount of 5.4 billion euro and 1.0 billion euro respectively.

        Press Release: Pirelli signs new debt refinancing


        The new facilities are senior secured with standard security package for this kind of transactions. Facilities include multi-currency tranches with tenor from 18 months up to 5 years.


        Company Type Amount Maturity Covenant
        Pirelli & C S.p.A. Term Loan €1.6 bln 2018 - Net Debt / EBITDA

        - EBITDA / Net Cash Interest Expenses
        Pirelli & C S.p.A.
        Pirelli International PLC
        Term Loan €1.0 bln 2019
        Pirelli & C S.p.A.
        Pirelli International PLC
        Term Loan €2.8 bln 2021, amortising
        Pirelli & C S.p.A.
        Pirelli International PLC
        Revolving Credit Facility €1.0 bln 2021

        As announced last February, with regard to this operation, Pirelli will not activate the Mergeco Facility put at its disposal by a pool of banks in the context of Marco Polo Industrial Holding’s acquisition offer.

    1. Bonds Outstanding

      1. On November 13, 2014 Pirelli successfully concluded the placement of a 5 year, fixed-rate, unrated bond issue worth a nominal 600 million euros. The operation obtained the lowest coupon - 1.75% - in Pirelli’s history, as well as for an Italian unrated corporate Eurobond, demonstrating the confidence investors have in Pirelli’s credit. The loan was placed with over 400 international investors and attracted total orders of approximately 5 billion euro.


        Characteristics of the Bond:

        issuer: Pirelli International plc issue price: 99.498%
        guarantor: Pirelli Tyre S.p.A. redemption price: 100%
        settlement date: 18 November 2014 minimum denomination: € 100,000 and additional multiples of € 1,000
        maturity date: 18 November 2019 listing: Luxemburg Stock Exchange (www.bourse.lu)
        coupon: 1.75% ISIN: XS1139287350


        Previous Bond

        On February 10, 2011 Pirelli & C. successfully concluded the placement of a 5 year, fixed-rate, unrated bond issue worth a nominal 500 million euros. The offering, to international institutional investors, was positively received and more than 9 times oversubscribed. Over 93% was placed with institutional investors outside Italy.


        Characteristics of the Bond:

        issuer: Pirelli & C S.p.A. issue price:  99.626%
        guarantor:  Pirelli Tyre S.p.A. redemption price: 100%
        settlement date: 22 February 2011 minimum denomination: € 100,000 and additional multiples of € 1,000
        maturity date: 22 February 2016 listing: Luxemburg Stock Exchange (www.bourse.lu)
        coupon: 5.125% ISIN: XS0592703382


        Disclaimer


        The publication of this information does not constitute or form part of any offer to sell nor a solicitation of any offer to buy any securities in any jurisdiction in which such offer or sale would be unlawful. It may be unlawful to distribute this information in certain jurisdictions.

        The publication of this information does not constitute a public offer of financial products in Italy as per Article 1, para. 1, letter. t) of Legislative Decree no. 58 of February 24, 1998.

        The publication of this information does not constitute an offer of securities for sale in the United States, in Australia, Canada or Japan and such information is not for direct or indirect distribution in any such jurisdictions. The securities referred to in this information have not been and will not be registered under the US Securities Act of 1933, as amended, and can not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.


Last Revised: 06 Apr 2017