Campari, new shares and bonds to finance the acquisition of Courvoisier
Securities worth EUR 650 million and bonds worth around EUR 500 million are ready for placement
2' min read
Le ultime da Radiocor
***Snam: Scornajenchi, per Bioenerys una ventina di offerte, closing entro fine anno
Borsa: in rialzo con corsa tech e venti di pace, Milano ne approfitta e chiude a +0,7%
Meloni: estensione Patto Stabilita' non vuol dire fare nuovo debito (RCO)
2' min read
Davide Campari is grounding the tools to finance the acquisition of Courvoisier cognac, an asset valued at $1.32 billion, by size the most important deal in the group's history. To support it, the company will offer new ordinary shares worth around 650 million in a reserved placement through accelerated bookbuilding and a nominal amount of senior unsecured convertible bonds maturing in 2029 of around 500 million.
As foreseen in the announcement of the Courvoisier acquisition on 14 December last regarding the various financing alternatives, with this placement the group intends to 'take advantage of favourable market conditions to optimise the financing structure'. The net proceeds of the placement will be used to finance the transaction and for general corporate purposes. "The placement," reads a company note, "will improve the group's pro forma capital structure by accelerating the deleverage process and lengthen the average maturity of the group's liabilities, thus further strengthening" its financial profile, "enabling further growth.
In detail, the Board of Directors resolved on 14 December, the day the acquisition was announced, to issue the new shares, excluding pre-emptive rights. The new shares will confer the same rights, including the right to a dividend, as the existing ordinary shares, and represent up to 5.6% of Campari's issued and outstanding ordinary share capital. At the time of the issue, the company will submit an application to Euronext Milan for admission to trading of the new shares, and anticipates that they will be admitted to trading on Euronext Milan immediately following their issue.
Instead, the convertible bonds will be issued at par and in registered form and carry an annual coupon of between 2.125% and 2.625%, payable in semi-annual instalments on 17 July and 17 January of each year, with the first coupon payable on 17 July 2024. The convertible bonds will have a maturity of five years (unless previously redeemed, converted or repurchased and cancelled) and will be redeemed at maturity (around 17 January 2029) at their nominal value.
The acquisition of Courvoisier cognac from Beam Suntory will, in Campari's intentions, strengthen the group's portfolio with a 'fourth axis' of development alongside aperitifs, bourbon and tequila. The acquisition will bring an immediate net sales contribution of USD 249 million (figures to 2022,) of which around 60% will be in the US, accompanied by an ageing liquid inventory with a book value of USD 365 million as at 31 October this year. Completion is expected in 2024.
