to download Telecom Italia Annual Report 2011 - Company Reporting

(millions of original currency) Currency Amount Repayment
date
Repayments
Telecom Italia Capital S.A. Floating Rate Notes 850 million U.S. dollars, 3-month
USD LIBOR +0.61% USD 850 7/18/2011
Telecom Italia Capital S.A. 750 million U.S. dollars 6.2% USD 750 7/18/2011
Telecom Italia Finance S.A. 7.50% 1,791 million euros (1) Euro 1,791 4/20/2011
Telecom Italia Capital S.A. Floating Rate Notes 400 million U.S. dollars, 3-month
USD LIBOR +0.48% USD 400 2/1/2011
Telecom Italia S.p.A. 4.5% 750 million euros Euro 750 1/28/2011
(1) Net of buybacks by the company for 209 million euros during the years 2009-2011.
As occurred in past years, during 2011, the Telecom Italia Group bought back bonds, with the aim of:
• giving investors a further possibility of monetizing their positions;
• partially repaying some debt securities before maturity, increasing the overall return on the Group’s
liquidity without inviting any additional risks.
In particular, the following bonds were repurchased:
(millions of original currency) Currency Amount Buyback periods
Buybacks
Telecom Italia Finance S.A. 1,791 million euros 7.50%
maturing April 2011 (*) Euro 93 January - March 2011
Telecom Italia Finance S.A. 801 million euros 7.25%
maturing April 2012 Euro 199 January - September 2011
Telecom Italia Finance S.A. 759 million euros 6.875%
maturing January 2013 Euro 91 November – December 2011
Telecom Italia S.p.A. 1,222.5 million euros 6.25%
maturing February 2012 Euro 27.5 December 2011
Telecom Italia S.p.A. 645 million euros 6.75%
maturing March 2013 Euro 5 December 2011
(*) Bonds had already been bought back for 116 million euros in the years 2009 and 2010. Therefore the total amount bought back is 209 million euros.
In reference to the Telecom Italia S.p.A. 2002-2022 bonds, reserved for subscription by employees of
the Group, at December 31, 2011, the nominal amount is equal to 266 million euros and decreased by
39 million euros compared to December 31, 2010 (305 million euros).
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Revolving credit facility and term loan
The following table shows the composition and the drawdown of the committed credit lines available at
December 31, 2011. These are represented by the revolving credit facility for a total of 8 billion euros
expiring August 2014, the syndicated revolving line for a total of 1.25 billion euros expiring
February 2013 and the revolving credit line for a total of 200 million euros signed December 20, 2010
and expiring June 19, 2012 (renewable at the discretion of Telecom Italia, up to December 18, 2013):
(billions of euros) 12/31/2011 12/31/2010
Agreed Drawn down Agreed Drawn down
Revolving Credit Facility – expiring February 2013 1.25 0.25 1.25 --
Revolving Credit Facility – expiring August 2014 8.0 2.0 8.0 1.5
Revolving Credit Facility – expiring June 2012
(renewable to December 2013)
0.2 0.2 0.2 0.12
Total 9.45 2.45 9.45 1.62
Report on Operations Review of Operating and Financial Performance - Telecom Italia Group 32