UPDATE 1-Unipol offers to swap 2017 bond for new 2021 notes
(Adds price guidance, date for yield announcement)
MILAN Feb 18 (Reuters) - Italian insurance group Unipol said on Tuesday it has offered to swap up to 500 million euros ($685 million) of an existing 2017 bond in new notes which will mature in 2021.
Price guidance for the new bonds is set at 3.15 percentage points over the seven-year mid-swap rate, an official from Lucid, the exchange agent for the deal, told Reuters.
The exchange offer will expire on Feb. 26. The final offer yield will be announced on Feb.27, the Lucid official said.
Unipol said that if holders of less than 500 million euros in the existing bonds choose to participate, the insurer may issue an additional 500 million euros worth of notes to increase the liquidity of the new issue.
($1 = 0.7298 euros) (Reporting by Isla Binnie; Editing by Pravin Char)