Significant events subsequent to the end of the year

  • Pirelli & C. S.p.A. sold its equity investment in CyOptics Inc. (34.41% shareholding)
  • Pirelli & C. S.p.A. successfully concluded its placement of an unrated bond issue worth a nominal euro 500 million

On January 13, 2011 Pirelli & C. S.p.A. sold its equity investment in CyOptics Inc. (34.41% shareholding) for USD 23.5 million.

On February 10, 2011 Pirelli & C. S.p.A. successfully concluded its placement of an unrated bond issue worth a nominal euro 500 million with international institutional investors on the Eurobond market. This issue was enthusiastically received by investors, with requests totalling more than euro 4.5 billion, or over nine times the amount offered. More than 93% of the bond issue was placed with foreign investors. The placement, executed in accordance with the Pirelli & C. S.p.A. Board of Directors resolution of July 29, 2010, is one of the actions being taken to streamline the Group debt structure by lengthening the average duration of debt and diversifying funding sources.

The notes have the following characteristics:

  • issuer: Pirelli & C. S.p.A.
  • guarantor: Pirelli Tyre S.p.A.
  • amount: euro 500 million
  • settlement date: February 22, 2011
  • maturity: February 22, 2016
  • coupon: 5.125%
  • issue price: 99.626%
  • redemption price: 100%
  • minimum denomination: euro 100 thousand and additional multiples of euro 1000

The effective yield at maturity is 5.212%, corresponding to a yield of 230 basis points above the corresponding reference rate (mid swap). The notes will be listed on the Luxembourg Stock Exchange. The placement was handled by Barclays Capital, acting as global coordinator, Banca IMI, Mediobanca, SG CIB and Unicredit as joint bookrunners.