Debt

Download Pirelli in Figures (XLS)

Net Financial Position at December 31st, 2018

€ million

Liquidity Profile

€ million

Liquidity position 1,354
Total committed lines not drawn 700
Liquidity margin 2,054

Gross Debt Maturity

€ million

Debt Currency Mix1

Share of debt

1. Average Gross Debt calculated over the last 12 months.

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.
The adoption of the EMTN program is in line with Pirelli’s goal of constantly optimizing its financial structure and will allow Pirelli to quickly take advantage of favorable windows of opportunity in the bond market.

Document regarding the EMTN Program (Base prospectus) is available below.

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Base Prospectus

 

Within the program Pirelli issued the following bonds:

 

On March 15th, 2018 Pirelli & C. announced the placement of a “Floating Rate Note” bond issue of 200 million euro with maturity in September 2020. The bond issue – reserved for institutional investors – permits the reimbursement of existing debt for the same amount, further optimizing the company’s financial structure by reducing the cost of debt.

The notes have the following characteristics:

  • Issuer: Pirelli & C. S.p. A.
  • Guarantor: Pirelli Tyre S.p.A.
  • Amount: 200 million euro
  • Settlement date: 26 March 2018
  • Maturity date: 26 September 2020
  • Coupon: Euribor 3m +0.70%
  • Issue price: 100%
  • Redemption price: 100%
  • Listing: Luxemburg Stock Exchange

Following this transaction, the total amount of bonds issued in the context of the December 2017 Board authorization for 1 billion euro – as part of the Group 2 billion euro EMTN senior unsecured programme – reaches 800 million euro.

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Press Release

 

On January 22nd 2018,Pirelli successfully concluded the placement with international institutional investors of an unrated bond on the Euromercato for a total nominal amount of 600 million Euro, duration 5 years, at a fixed rate.
As evidence of investors’ faith in Pirelli, the bond received at closing total orders of 2.4 billion euro from approximately 280 international investors. The effective yield at maturity will be 1.479% or 110 basis points higher than the reference rate (mid-swap).

On December 19th 2018, Pirelli announced the termination of the mandate given to a specialized financial intermediary for the partial buy back of the notes for an amount up to Euro 50 million. At the conclusion of the partial buy-back program, bonds bought back and cancelled totaled 47 million euro and, consequently, the total nominal value of bonds outstanding stands at 553 million euro.

The bond has the following characteristics:

  • Offering circular: EMTN Program (Euro Medium Term Note) for 2 billion euro as of January 10th 2018
  • Ranking: senior, unsecured
  • Issuer: Pirelli & C. S.p.A.
  • Guarantor: Pirelli Tyre S.p.A.
  • Issued Amount: Euro 600 million
  • Outstanding Amount: Euro 553 million
  • Settlement date: 25 january 2018
  • Maturity: 25 january 2023
  • Coupon: 1.375%
  • Issue price: 99.502%
  • Redemption price: 100%
  • Listing: Luxembourg stock exchange (https://www.bourse.lu/security/XS1757843146/261234)
  • ISIN: XS1757843146
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Final Terms

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Partial Buyback

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

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 the 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 Amount Maturity Covenant
Pirelli & C S.p.A. Pirelli International PLC Term Loan €1.75 billion 2020 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli International PLC Term Loan €1.75 billion 2022 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli International PLC Revolving Credit Facility €0.7 billion 2022 Net Debt / EBITDA

On June 26th 2018 Pirelli & C. closed a "Schuldschein" financing – guaranteed by Pirelli Tyre S.p.A. – for a total of 525 million euro, following the terms detailed below.

The transaction will facilitate reimbursement of existing debt, further optimizing its structure and costs.


Press Release
 

Borrower Warrantor Amount Maturity Covenant
Pirelli & C S.p.A. Pirelli Tyre €82 million 2021 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli Tyre €423 million 2023 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli Tyre €20 million 2025 Net Debt / EBITDA

Last revised: 4 Apr 2019

Further information on the company's financial communications is available in the

PRESENTATIONs AND WEBCASTS PAGE

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