Campari Group has entered into a term debt facility agreement for an amount of up to €750 million with a pool of banks for general corporate financing.
The move aims to strengthen the company’s ‘solid’ financial profile and enable it to fulfil all its financial commitments including the payment of dividend worth of €62.9 million, scheduled on 22 April 2020, the Italian spirits giant said.
The money will also be used for the continuation of the €350 million buy-back programme and the repayment of the €581 million Eurobond issued by Davide Campari-Milano S.p.A. in 2015 and expiring in September 2020.
As of 31 December 2019, Campari Group’s financial leverage was 1.6 times net debt to adjusted EBITDA ratio with available liquidity of €704.4 million as well as undrawn credit lines of €500 million.
The new agreement is a bridge short term facility with 30 June 2021 as the initial termination date and an option to extend it to 31 December 2021.
The pool of banks collaborating with the company comprises Banca IMI S.p.A. (Intesa Sanpaolo Group) as arranger, Banca Nazionale del Lavoro S.p.A. as original lender and facility agent, BNP Paribas, Italian Branch as arranger, Crédit Agricole CIB, Milan Branch as arranger and original lender, Intesa Sanpaolo S.p.A. as original lender and UniCredit S.p.A. as arranger and original lender, on a ‘club deal’ basis, the Aperol maker added.
Allen & Overy acted as legal advisor to Davide Campari‐Milano S.p.A. and Clifford Chance served as legal advisor to the pool of banks for this transaction.