TELCO SPA PRESS RELEASE
COMPLETED THE REFINANCING TRANSACTION
 

Telco today completed the refinancing transaction referred to in the press release issued on 3 May 2012, which involves:

− execution of the announced capital increase of €600m, subscribed for by all shareholders pro rata to their interests in the company’s share capital;
− issue of a €1,750m bond, also subscribed for pro rata by the shareholders;
− execution of a €1,050m financing with HSBC, Intesa Sanpaolo, Mediobanca, Société Générale and Unicredit falling due on 27 November 2013, guaranteed by a pledge over the Telecom Italia shares.

Under the terms of the loan facility agreement, as was the case in 2010, the lending banks have granted Telco shareholders a call option over the Telecom Italia shares which may become available to them as a result of a potential enforcement of the pledge. Exercise of this call option is governed by a separate amendment agreement which is part of the existing agreement between shareholders.

Milan, 31 May 2012