Debt

Download Pirelli in Figures (XLS)

Net Financial Position 9M 2017

€ million

Liquidity Profile

€ million

Liquidity position 405
Total committed lines not drawn 558
Liquidity margin 964*

*Covers -2.4 years of forthcoming maturities

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, on January 22nd 2018 Pirelli issued the following bond issues:

 

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).

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.
  • Amount: Euro 600 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

 

Information regarding other currently outstanding bond issued by the Pirelli Group can be found below

 

On November 13, 2014 Pirelli successfully concluded the placement of a 5 year, fixed-rate, unrated bond issue worth a nominal €600 million. At the time of completion, 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 bond was placed with over 400 international investors and attracted total orders of some €5 billion.

Characteristics of the Bond:

  • Issuer: Pirelli International PLC
  • Guarantor: Pirelli Tyre S.p.A.
  • Settlement Date: 18th November 2014
  • Maturity Date: 18th November 2019
  • Coupon: 1.75%
  • Issue Price: 99.498%
  • Redemption Price: 100%
  • Minimum Denomination: € 100,000 and additional multiples of € 1,000
  • Listing: Luxemburg Stock Exchange (www.bourse.lu)
  • ISIN: XS1139287350

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:
http://www.pirelli.com/corporate/en/press/2017/07/06/pirelli-successfully-concludes-refinancing-of-banking-lines-for-4-2-billion-euro/

Borrower Type Amount Maturity Covenant
Pirelli & C S.p.A. Pirelli International PLC Term Loan €1.5 billion 2020 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli International PLC Term Loan €1.5 billion 2022 Net Debt / EBITDA
Pirelli & C S.p.A. Pirelli International PLC Revolving Credit Facility €0.7 billion 2022 Net Debt / EBITDA

Latest update: 16/02/2018