Bergamo, February 14, 2013
– Italcementi placed today a five-year fixed-rate bond issue on the European market, for a nominal amount of 350 million euro, as part of its Euro Medium Term Note Program.
The notes, issued by Italcementi Finance S.A. and unconditionally guaranteed by Italcementi S.p.A, pay a fixed annual coupon of 6.125% and will mature on 21 February 2018 . The issue price is 99.477 for a yield to maturity of 6.25%, corresponding to 515.5 basis points above the reference swap rate.
The notes have been rated Ba2 by Moody’s and BB+ by Standard and Poor’s. The placement raised over 2.5 billion euros in orders, more than 7 times the requested amount. International investors accounted for a large proportion of the order book.
“The purpose of this successful issue is to refinance maturing debt and reduce utilization of committed back-up facilities, taking advantage of a favorable market environment and investor interest in our company” Giovanni Maggiora, Italcementi’s CFO, said. “The transaction is a further step towards our strategic goals of optimizing the structure and maturity profile of the Group’s debt and diversifying its sources of funding. The size of the new issue is consistent with our decreasing borrowing requirements: as of the end of 2012, compared to the prior year, the net debt position of the Group decreased by approximately 100 million euros to less than 2 billion.”
Banca IMI, BNP Paribas, Credit Agricole, Natixis and Unicredit Bank were mandated as Joint Lead Managers for this transaction. The issue’s settlement date is 21 February 2013 .The notes, reserved exclusively for qualified investors with a minimum investment of 100,000 euro, will be listed on the Luxembourg Stock Exchange.