After taking on the lead-managing responsibilities more than a year ago, West LB and BNP Paribas priced Telecom Italia's domestic line receivables transaction last week. The deal, for E700 million, priced inside talk, with the 1.5-year, three-year and five-year landing at three-month Euribor plus 19, plus 27 and plus 34, respectively.

Market sources indicate that the structure of the deal left something to be desired, however. Most significantly, Telecom Italia, rated triple-B, is not a prime issuer. In most consumer receivables transactions, only triple-A rated companies are allowed to sell assets into an investment vehicle. Although deeper subordination might have taken care of the risk, the eligibility of the company's debt was not ignored by investors looking at the deal.

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