TREVISO, Italy – De’ Longhi S.p.A. has today completed the issue and placement of twenty year unsecured and non-convertible bonds with US institutional investors (so-called “US Private Placement”) for the amount of € 150 million. The completion of the transaction follows the prior approval obtained by the Board of Directors at the meeting of 11 March 2021, referred to in our press release issued on the same date.
The issue constitutes the second tranche in the context of the so-called bond issue program “Private Shelf Facility” set up by the Company in 2017 and has been underwritten by leading US institutional investors (part of the Prudential group).
This transaction is part of the strategy of extending the average effective duration of the Group’s debt portfolio and to take advantage of very favourable market conditions. The resources raised will be used for the current and extraordinary operational needs of the Group.
The securities have been issued in a single tranche and have a duration of 20 years, with expiry on 7 April 2041, and an average life of 15 years.
The bonds accrue interest from the subscription date at a fixed rate of 1.18% per annum. The repayment of the loan will take place annually with equal principal installments, the first of which will be due on 7 April 2031 and the last on the expiry date, without prejudice to the Company’s right of early repayment.
The bonds issued have no rating and are not intended for listing on regulated markets.
The issue is not backed by any real or personal guarantees. De’ Longhi is required to comply with financial covenants consistent with market practice and past transactions of a similar nature signed by the Company.