Swisscom finalises financing for Vodafone Italia takeover
The financing has been completed at attractive conditions and well ahead of the expected closing in the first quarter of 2025, said Swisscom.
Keystone / Michael Buholzer
Telecoms group Swisscom has taken the next step in its takeover of Vodafone Italia and secured financing for the deal, it announced on Thursday.
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Notes and bank loans will be taken out to pay the €8 billion (CHF7.9 billion) purchase price, Swisscom said. Following the issue of CHF1.15 billion ($1.25 billion) in Swiss Domestic Bonds at the beginning of May, €4 billion (CHF3.96 billion) in Eurobonds will now be added. The remaining amount will be financed via a €3 billion (CHF2.97 billion) bank loan, available in two tranches.
The financing has been completed at attractive conditions and well ahead of the expected closing in the first quarter of 2025, the group said in a press release. The incremental annual interest expense is initially estimated at a maximum of CHF250 million per year. This is in line with the figures presented when the deal was announced on March 15, 2024, said Swisscom.
The issue of five Eurobond tranches was reportedly almost three times oversubscribed. The tranches range from €500 million to €1.25 billion, with terms of between two and 20 years, and coupons of 3.5% to 3.875%. Together with the Swiss bonds, these notes replaced a €5.1 billion syndicated bridge loan, which Swisscom had secured to finance the takeover.
Adapted from German by DeepL/kp
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