Credit Facilities
Credit Facilities
Club Deal Eur 600mln ESG 2024 4.5y
In March 2024, Pirelli signed an agreement with a selected pool of international banks for a new euro 600 million term loan, expiring in October 2028.
The new line, signed within the context of the usual activities of managing and optimizing the financial structure, will permit the early reimbursement of part of the debt maturing in 2025, reinforcing the liquidity margin and lengthening debt maturities.
The new credit line is linked to the new and more challenging sustainability targets, set as part of the 2024-25 Industrial Plan Update, presented on 6 March 2024.
| Borrower | Guarantor | Type | Amount | Maturity | Financial Covenant | Sustainable Features |
| Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Term Loan | €600 million | October 2028 | None | ESG KPIs |
Please find the relevant Press Release at the following web page:
https://press.pirelli.com/pirelli-issues-a-600-mln-euro-sustainability-linked-bond-5-year-notes-demand-over-46-times-the-offering/
Club Deal EUR 500 mln ESG 2023 4y RCF
In December 2023, Pirelli signed an agreement with a selected pool of international banks a committed revolving credit line for a total amount of 500 million euro with a 4-year maturity (December 2027).
The new line, a further step in the usual activities of management and optimization of the Company’s financial structure, will reinforce the liquidity margin of the Pirelli Group.
In May 2024, the credit line was amended to be linked with the new and more challenging sustainability targets, set as part of the 2024-25 Industrial Plan Update, presented on 6 March 2024.
| Borrower | Guarantor | Type | Amount | Maturity | Financial Covenant | Sustainable Features |
| Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Committed Revolving Credit Facility | €500 million | December 2027 | None | ESG KPIs |
Please find the relevant Press Release at the following web page:
https://press.pirelli.com/pirelli-signs-agreement-for-4-year-revolving-credit-line-of-500-mln-euro/
Club Deal EUR 1.6 bln ESG 2022 5y
On February 21st 2022, Pirelli signed a €1.6 billion ESG debt refinancing with a pool of 16 primary national and international banks. The financing was aimed at reducing the cost of debt and at lengthening the average maturity, contributing to an improvement of Pirelli’s financial profile. As a consequence of the above, previous committed credit facilities due in June 2022 have been prepaid and cancelled.
The facilities are unsecured and include both Euro term loan and multi-currency revolving credit facilities for a total amount of €600 million and €1.0 billion respectively with tenor of 5 years.
| Borrower | Guarantor | Type | Amount | Maturity | Financial Covenant | Sustainable Features |
| Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Term Loan | €600 million | February 2027 | None | ESG KPIs |
| Pirelli & C S.p.A. | Pirelli Tyre S.p.A. | Revolving Credit Facility | €100 million | February 2027 | None | ESG KPIs |
| Pirelli International Treasury S.p.A | Pirelli Tyre S.p.A. | Revolving Credit Facility | €900 million | February 2027 | None | ESG KPIs |
Please find the relevant Press Release at the following web page:
https://press.pirelli.com/pirelli-finalized-signing-of-5-year-esg-bank-line-of-16-billion-euro/
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 |
Unsecured financing
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 | Net Debt / EBITDA | |
| Pirelli & C S.p.A. | Term Loan | €1.75 billion | €0.95 billion | 2022* | Net Debt / EBITDA |
| Pirelli & C S.p.A. |
Revolving Credit Facility | €0.7 billion | €0.7 billion | 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. | |||||