NEW MEDIUM-TERM FINANCING PLAN FOR € 65 MILLION
- Funding objectives: upgrading of existing financial exposure, financing of the Group’s investment plan and liquidity requirements
- Banco BPM together with Banca IMI and Unicredit as mandated lead arranger and bookrunner of the deal
- Banco BPM, Intesa Sanpaolo and Unicredit are the financing banks
Cavriago (RE), July 1, 2019
Landi Renzo S.p.A. signed a five-year medium-term financing agreement with a pool of three leading banks for a total amount of € 65 million. The banks involved are Banco BPM, that coordinated the financing and has been mandated lead arranger and bookrunner together with Banca IMI (Intesa Sanpaolo Group) and Unicredit. Banco BPM, Intesa Sanpaolo and Unicredit are the financing banks.
These financial resources will be used to upgrade the existing financial exposure for a total of € 55 million and, for the remaining portion, to finance the investment and growth plan of the Landi Renzo Group.
Cristiano Musi, Chief Executive Officer of Landi Renzo S.p.A. stated: “To extinguish in advance, after only two years, the refinancing that the Company had subscribed at a time of difficulty and replace it with this agreement is a source of great pride for the whole team and represents a very important sign of trust that comes to us from leading banking institutions, after the improvement of the rating and the development agreements signed with major OEMs at a global level. The new financing plan will allow us to reduce financial charges, to have even more liquidity to invest in the development of the Group, and to focus even more resolutely on the growth plan that we are carrying out at an international level in the automotive sector (in the passenger car and heavy duty segments), with investments in strategic areas such as hydrogen mobility.”
In order to improve the financial profile, the Board of Directors of Landi Renzo approved, during the Board meeting held on 14 May, the negotiation of a new financing contract aimed mainly at repaying the existing financial debt resulting from the Optimisation Agreement signed in March 2017 and the “LANDI RENZO 6.10% 2015-2022” bond (code ISIN IT0005107237), as well as finding new financial resources to support new investments for business development for about € 10 million. The Board of Directors also resolved to proceed with the full early repayment of the aforementioned bond pursuant to art. 9 of the related Regulations.
The debt repayment plan provides for half-yearly instalments of € 40 million, while for the additional € 15 million repayment will be made on expiry of the financing contract.
In the deal Landi Renzo was assisted by the law firm Clifford Chance, while the banks were assisted by the law firm NCTM.
Landi Renzo is a world leader in LPG and natural gas fuel systems and components for motor vehicles. The Company, based in Cavriago (Reggio Emilia) with 60 years’ experience in the field, stands out for its international scope, operating in more than 50 countries, with international sales accounting for around 80% of total sales. Landi Renzo S.p.A. has been listed on the STAR segment of the Italian Stock Exchange since June 2007.
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LANDI RENZO S.p.A.
CFO and Investor Relator