Bond issue "Credito Valtellinese 2% 1999-2004, Index-Linked, Convertible, Cum Warrant, Subordinated" (code. ISIN IT0001300315)
As regards the first periodic payment of the first tranche of the "Credito Valtellinese bond issue 2% 1999-2004, index-linked, convertible, cum warrant, subordinated", the amount of the redemption premium, which will be paid to the bond holders exercising the power of conversion, is as follows:
In accordance with the bond issue regulations, in fact:
Until February 14 2002, each periodic payment, which amounts to € 300 per bond (nominal value € 1.000), entitles the bond holder to convert € 150 into 24 new Credito Valtellinese shares (the conversion value is € 6,25 per share, of which € 3 taken as nominal value and € 3,25 as paid-in surplus); The bond holders exercising the power of conversion are receiving the other 150 euros under the form of a redemption premium linked to the performance of financial indicators (1)
In conformity with the revaluation of the above-mentioned financial indices resulting from the bond issue regulations, the redemption price is € 107,37 every 100 euros of the loan capital. They will receive € 161,05 for each tranche of € 150 before retentions provided for by the law.
The bond holders who are not exercising the power of conversion will be paid the whole amount on the basis of the nominal value.
(1) In particular, article 4 of the regulations reads that for the payment due on February 15th 2002 the redemption premium amounts to 70% of the progressive monthly average revaluation (calculated with respect to the start of the issue on February 15th 1999) of a basket of indices made up of the "S&P 500" (New York Stock Exchange) for 50% and of "Nikkei 225" (Tokyo Stock Exchange) for the other 50%; the progressive average is calculated on the basis of the value of the two indices in the 36 official closes of the two Stock Exchanges. Starting from March 15th 1999, the value of the indices will be checked on the 15th of each month or, if it is a holiday, on the first working day, except for the last maturity for which we will consider the close of February 8th 2002.
Maturity for first periodic payment: redemption premium
