Debt and credit rating
Credit Facilities
REFINANCING EUR 4.2BN 2017 5Y
On June 27th 2017, Pirelli closed a €4.2 billion debt refinancing with a pool of 18 primary international banks. The financing was concluded to reduce the cost of debt and to lengthen the average maturity, contributing to an improvement of Pirelli’s financial profile. As a consequence of the above, all previous committed credit facilities have been cancelled.
The facilities are unsecured and include both multi-currency term loan and revolving credit facility for a total amount of €3.5 billion and €0.7 billion respectively with tenor from 3 years up to 5 years.
Please find the relevant Press Release at the following web page:
https://press.pirelli.com/pirelli-successfully-concludes-refinancing-of-banking-lines-for-42-billion-euro/
| Borrower | Type | Original Facility Amount | Current Facility Amount | Maturity | Covenant |
| Pirelli & C S.p.A. |
Term Loan | €1.75 billion | REPAID | 2022* | Net Debt / EBITDA |
| Pirelli & C S.p.A. | Term Loan | €1.75 billion | REPAID | 2022* | Net Debt / EBITDA |
| Pirelli & C S.p.A. |
Revolving Credit Facility | €0.7 billion | REPAID | 2022* | Net Debt / EBITDA |
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| *The Facilities include a Pirelli’s sole discretionary option to extend the original maturities up to 2 years and therefore to 2024. | |||||
Club Deal EUR 800 mln ESG 2020
On March 31, 2020 Pirelli subscribed to a new €800 million financing with a pool of primary Italian and international banks. The new bank line is entirely sustainable, in accordance with the group’s targets in terms of economic and environmental sustainability.
This new financing is unsecured and includes two term loan tranches for a total amount of €600 million and €200 million respectively, both with a 5Y tenor.
| Tranche | Borrower | Guarantor | Type | Amount | Maturity | Covenant | Sustainable Features |
| Tranche 1 | Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Term Loan | €600 million | April 2025 | Fallen Away | ESG KPIs |
| Tranche 2 | Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Term Loan | €200 million | April 2025 | Fallen Away | Circular Economy KPIs |
Bilateral line EUR 600mln 2019
During 1Q 2019, Pirelli signed a bilateral financing for an amount of €600 million with a primary bank. The transaction, realized at very attractive levels when compared to the corresponding yield requested by the bond market at the time, lengthens the average life of the debt and improves Pirelli’s financial profile as it refinances outstanding debt for the same amount.
The bilateral bank line, guaranteed by Pirelli Tyre S.p.A., is unsecured.
| Borrower | Guarantor | Type | Amount | Maturity | Covenant |
| Pirelli & C S.p.A. | Pirelli Tyre | Bilateral Financing | €600 million | 2024 | Net Debt / EBITDA |
For further information please click here
2018 EMTN PROGRAM
On December 21st 2017 the Board of Directors of Pirelli approved an EMTN (Euro Medium Term Note) program for the issue of senior unsecured non-convertible bond to a maximum value of 2 billion euro.
For further information please click here