Public disclosure required by Consob Resolution No. 11971 of May 14, 1999, as amended. Major success for the syndication of € 1 billion approved in April. The incremental facility, originally set at € 250 million is increased to € 500 million. Edison is continuing to reorganize its indebtedness with the goal of lowering the cost of funds and lengthening the average maturity of its indebtedness.
Milan, May 20, 2004 - The general syndication of a five-year Edison financing facility launched with the expectation of € 250 million in supplemental financing was completed yielding instead additional resources totaling € 500 million. Strong interest by the banks produced a financing agreement for a final amount of € 1,500 million. This past April, Edison received a five-year senior unsecured credit line in the amount of € 1,000 million from a bank syndicate that included Banca Intesa, BNP Paribas, Citicorp, Crédit Agricole Indosuez, HSBC Bank, Mediobanca, Société Générale, The Royal Bank of Scotland and Unicredit Banca Mobiliare. These banks were then mandated to arrange, on behalf of Edison, a general syndication for an additional € 250 million, which would increase the credit line up to € 1,250 million. Instead, a substantial oversubscription was raised and the deal was increased to € 1,500 million. The original group of organizing banks was expanded to include 15 more Italian and international credit institutions.
The overall terms of the financing are the most competitive available to prime borrowers.
This transaction is part of a debt reorganization plan made possible by the Company’s regained financial strength. The purpose of this plan is to reduce significantly the cost of funds, lengthen the average maturity of the outstanding indebtedness and provide sufficient support for the Company’s industrial plan.
