LONDON, July 25 (Reuters) - Italian gas distributor Snam has finalised a 9 billion euro ($10.88 billion) syndicated loan that backs its separation from Eni and repayment of debt to the oil and gas major, the lead banks on the deal said in a statement.
This follows Italy's decision in May to split Snam from Eni as part of an effort to boost competition to lower energy prices in the country.
As previously reported, the financing is still in a limited phase of syndication to a restricted number of Snam's relationship banks.
The financing is led by 11 bookrunners and mandated lead arrangers -- Banca IMI/Intesa Sanpaolo, Bank of America Merrill Lynch, BNP Paribas, Citi, HSBC, JP Morgan, Mediobanca, Morgan Stanley, Societe Generale, UBS and Unicredit.
Those banks were joined, earlier in July, by mandated lead arrangers Bank of Tokyo Mitsubishi UFJ, Barclays Bank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corporation in an 'early bird' phase of syndication.
Banca IMI, BNP Paribas, JP Morgan and Unicredit are coordinators on the financing.
The financing was reduced from 11 billion euros through the recent issue of 2 billion euros of bonds.
The loan originally comprised a one-year, 6 billion euro, one-year bridge-to-bond facility; a three-year, 2 billion euro revolving credit facility; a five-year, 1.5 billion euro revolving credit facility; and a five-year, 1.5 billion euro term loan.
The bridge-to-bond included two six-month extension options.
The loan pays a 300-350 basis points (bps) over Euribor to cover Italian banks' higher funding costs. ($1 = 0.8275 euros) (Reporting by Alasdair Reilly. Editing by Jane Merriman)