Bond issue "Credito Valtellinese 2% 1999-2004, Index-Linked, Convertible, Cum Warrant, Subordinated" (code. ISIN IT0001300315)
A notice which was published in the Italian daily newspaper "Il Sole 24 Ore" on January 9, 2003, reported end of maturity period for second periodic payment for bond issue Credito Valtellinese 2% 1999-2004, Index-Linked, Convertible, Cum Warrant, Subordinated".
The bond issue regulations are as follows:
Until February 14, 2003, each periodic payment, which amounts to € 300 per bond (nominal value € 1,000), entitles the bond holder to convert € 150 into 23 new Credito Valtellinese shares (conversion value is € 6,52 per share, of which € 3 taken as nominal value and € 3,52 as paid-in surplus); 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 € 105,524 every 100 euros of the loan capital. The bond holders will be paid € 158,286 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 reads that for the periodic payment due on February 15, 2003, the redemption premium will be equal to 70% of the progressive monthly average revaluation, calculated with respect to the emission date (February 15, 1999), of a basket of stock market indices consisting of the "S&P 500" (New York Stock Exchange) for 50% and "Nikkei 225" (Tokyo Stock Exchange) for the other 50%; the progressive average is calculated on the basis of the value of the above-mentioned indices in the 48 official closes of New York and Tokyo Stock Exchanges. Starting from March 15, 1999, the value of the indices will be assessed on the 15th of each month or, if the 15th is a holiday, on the subsequent working day, except for last maturity, for which the close of February 10, 2003 will be considered.
Maturity for second periodic payment: redemption premium
