Campari issues US$250 million Senior Unsecured Notes in the US Private Placement Market
- Campari issues three tranches of senior notes of US$40 million, US$100 million and US$110 million with 5, 7 and 10 year bullet maturities (due in 2014, 2016 and 2019 respectively)
- Fixed coupon rates of 6.83%, 7.50% and 7.99% respectively with no scheduled principal amortization
- A successful return to the US private placement market which enables Gruppo Campari to substantially lengthen the overall debt maturity profile
Milan, June 18, 2009 - Gruppo Campari has successfully completed the issue of US$250 million of senior unsecured notes placed with institutional investors in the US private placement market.
Bank of America Merrill Lynch (lead bookrunner) and Calyon Securities (USA) Inc. acted as placement agents.
A strong response from US institutional investors led to an oversubscription of the offering to US$250 million from an initial size of US$150 million.
The notes are structured in three tranches of US$40 million, US$100 million and US$110 million with 5 year, 7 year and 10 year bullet maturities due in 2014, 2016 and 2019, respectively. The fixed coupon rates are 6.83%, 7.50% and 7.99% respectively.
The notes have been issued by Delaware (USA) based Redfire Inc., a wholly-owned subsidiary of Davide Campari-Milano S.p.A. The proceeds of this issue will be used to refinance debt incurred by the Group in connection with the recent acquisition of Wild Turkey, and will substantially lengthen the maturity profile at favourable interest rates with no scheduled principal amortization.
This transaction represents a successful return by Gruppo Campari to the US debt private placement market. Campari last issued senior notes in the US institutional market in 2002 and 2003.
Gruppo Campari is a major player in the global beverage sector, trading in over 190 nations around the world with a leading position in the Italian and Brazilian markets and a strong presence in the USA and Continental Europe. The Group has an extensive portfolio that spans three business segments: spirits, wines and soft drinks. In the spirits segment its internationally renowned brands, such as Campari, SKYY Vodka and Wild Turkey stand out. It also has leading regional brands including Aperol, Cabo Wabo, CampariSoda, Cynar, Glen Grant, Ouzo 12, X-Rated, Zedda Piras and the local Brazilian brands Dreher, Old Eight and Drury’s. Its wine segment boasts the global brand Cinzano, as well as important regional brands including Liebfraumilch, Mondoro, Odessa, Riccadonna, Sella & Mosca and Teruzzi & Puthod. The soft drinks segment comprises the non-alcoholic aperitif Crodino and Lemonsoda as well as its respective line extension dominating the Italian market. The Group employs over 2,000 people. The shares of the parent company, Davide Campari-Milano S.p.A. (Reuters CPRI.MI - Bloomberg CPR IM), are listed on the Italian Stock Exchange. www.camparigroup.com