Italy's Autostrade bondholders can ask for early repayment if concession revoked

Holders of bonds sold by Autostrade per l'Italia, the Atlantia unit managing the motorway that collapsed this week killing at last 38 people, can request an early repayment if the toll concession is revoked, a document showed.

Italian Deputy Transportation Minister Edoardo Rixi told Reuters the government was considering stripping Autostrade - which manages 3,020 of Italian toll roads - either of its full concession or of that for the affected A10 motorway or imposing a fine.

Based on the offering circular for Atlantia's issuance programme, bondholders can exercise a put option in a number of cases including when "the Autostrade Italia concession or the single concession contract is terminated or revoked in accordance with its terms or for public interest reasons."

Under the terms of the concession, the state can revoke the concession if there is a serious breach on part of the concession holder.

Atlantia has issued five bonds, due between 2021 and 2029, worth a total of 3.2 billion euros under the 7 billion euro programme.

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