The interest of international industry peers for Italian Npl market is growing. Meanwhile Italian companies keep using minibonds as instruments for consolidating their business or fostering growth.
Sicily’s producer of canned tomato Cooperativa OP Faro listed on Milan ExtraMot Pro a short-term minibond of 0.4 million of euros that will mature in April 2019 and pay a 6% coupon (see here a previous post by BeBeez). Frigiolini & Partners Merchant acted as the company’s financial advisor for this issuance. Last year COPF posted revenues of 11.6 million, while in 2016 generated sales of 14.5 million with an ebitda of 0.5 million and a net financial debt of 5.3 million
Baia Silvella, an Italian company that manages camping sites and touristic villages, issued a 10 million euros minibond that Banca Finint will place by 31 October (see here a previous post by BeBeez). Fondo Pensione Solidarietà Veneto, Anthilia sgr, Banca Ifis, and Veneto Sviluppo already invested in the liability. The Vezzola family founded Baia Silvella almost 40 years ago. Last year the company generated revenues in the region of 30 million of euros with an ebitda margin of 13 million or above 37%. Baia Silvellainvest such proceeds in its organic growth. However, Valerio Vezzola, the company’s ceo, said that such a transaction is the first steptowards further considerations about different instruments that financial markets offer.
Spinosa, an Italian producer and distributor of buffalo mozzarella, placed a minibond worth 4.5 million of euros with a six years maturity without disclosing its price (See here a previous post by BeBeez). Fondo Impresa Italia, the private debt arm of investment firm Riello Investimenti Partners, subscribed the whole issuance that will support Spinosa for investments worth 10 million. In the last five years, the company doubled its revenues, while for 2018 it expects to generate revenues of22.5 million with an above 10% ebitda margin.
Bain Capital placed a bond of 455 million of euros that will finance the acquisition of Italian paper producer Fedrigoni, who has an enterprise value of 650 million and owns iconic brand Fabriano (see here a previous post by BeBeez). Such Dublin-listed bond will mature in November 2024, but has a call option after its first year, and pay a floating coupon of 3 months Euribor plus 425 basis points. Bnp Paribas, Hsbc, Kkr, and UBI Banca acted as joint bookrunners. Moody’s and S&P’s respectively assigned a B1 and B+ rating to this issuance, with a preliminary B2 and B+, and stable outlook. This bond, even though it’s senior, is subordinated to a super-senior revolving line of 100 million for which Fedrigoni offered as collaterals its own shares, current accounts and intra-group commercial credits. Last year Fedrigoni posted sales of 1.1 billion.
Comes, an Italian advisory company for contractors, listed on Milan Extra Mot Pro a one million of euros short-term minibond due to mature in April 2019 paying a 3.8% coupon (see here a previous post by BeBeez). Banca Sella, the sole arranger of the issuance, and Confidi Systema! entirely subscribed the bond. Comes will invest the proceeds of such bond in developing the security systems for Mose, a complex dyke system for Venice lagoon. Comes belongs to Tommaso Carone and Vincenzo Cesareo. In 2016 it generated revenues of 26.3 million, an ebitda of 1.75 million, and net financial debt of 7.85 million.
Warsaw-listed Kruk, a Polish Npl firm, announced to have acquired 51% of Agecredit, an Italian credit recovery firm (see here a previous post by BeBeez). Kruk committed to buying the whole business in the next months. This is the second Italian acquisition for Kruk as it bought the NPL servicer Credit Base International in November 2016. Marco Pasini founded Agecredit in 1994. Last year the company posted revenues of 3.1 million. Cross Border and Lmcr provided financial and legal advisory to Agecredit. Milan and London based law firm GLG assisted Kruk, who hired Studio Belluzzo and Epyon as tax advisors. Piotr Krupa, founder and chairman of Kruk, foresees that the Italian credit recovery market is worth up to 800 million. Since the end of 2015, Kruk invested 140 million for acquiring 10 NPLs portfolios worth 2.7 billion.
