Due to the high demand – orders were received for more than double the initial amount, set at Euro 500 million – Olivetti decided to increase the offer up to a total of Euro 800 million.
The amount has been subdivided into two tranches:
an increment of Euro 450 million on the Olivetti International Finance NV 5 3/8 per cent. Notes due 2004 from an original amount of Euro 4.5 billion (raised to Euro 4.95 billion);
an increment of Euro 350 million on the Olivetti International Finance NV 6 1/8 per cent. Notes due 2009 from an original amount of Euro 1.75 billion (raised to Euro 2.1 billion).
The re-offer price has been set at:
99.695% for the Euro 450 million tranche due in 2004 with a yield of 153 basis points above the French benchmark BTAN 3.50% July 2004;
94.956% for the Euro 350 million tranche due in 2009 with a yield of 248 basis points above the German benchmark Bund 4.50% July 2009.
Application of the credit protection package means that the two bonds currently bear a 0.45% coupon increment.
Lehman Brothers acted as Lead Manager and book runner for the operation, with Mediobanca as Senior Co-lead Manger.
