Campari Group’s very solid financial profile to be further strengthened
Milan, April 14th, 2020-Davide Campari-Milano S.p.A. has entered into a term debt facility agreement for an amount up to of €750,000,000 (the Facility) with a pool of banks composed of 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 Facility is a bridge short term facility, with an initial termination date falling on 30th June 2021 and an extension option to 31st December 2021. The purpose of the Facility is to finance general corporate purposes of the Campari Group including, but not limited to, the redemption of the Eurobond issued by Davide Campari-Milano S.p.A. in 2015 and expiring in September 2020 for an amount of €581 million.
As a result of the Facility, Campari Group’s already very solid financial profile will be further strengthened. As at 31st December 2019, the financial leverage was 1.6 times net debt to adjusted EBITDA ratio. Thanks to the above Facility as well as available liquidity (cash and cash equivalents of €704.4 million as at 31st December 2019) combined with undrawn credit lines of €500 million, the Group confirms its ability to maintain all its financial commitments, with particular reference to the dividend payment of €62.9 million, scheduled for April 22nd 2020, the continuation of the €350 million buy-back programme as well as the above mentioned repayment of the €581 million bond.
Moreover, the Group confirms the absence of any financial covenants on the outstanding debt.
Allen & Overy is acting as legal advisor to Davide Campari‐Milano S.p.A. and Clifford Chance is acting as legal advisor to the banks pool on this transaction.