Insurance US giant Prudential subscribed 30 million euros bonds issued by Italy’s AMA Group, a mid-size company based in in San Martino in Rio (Reggio Emilia) producing components for agricultural machinery, MF-Milano Finanza iwrote last February 14.
More in detail, Prudential subscribed in a private placement two kind of bonds: a senior bond maturing in 2020 and a mezzanine bond maturing in 2022. Proceeds of thos bonds will be used by Ama to reimburse banks which were still exposed to the group after a crisis in 2010 led it to a debt restructuring agreement with credit lines which were maturing in 2018.
Thanks to the new schedule in debt maturity, Ama Group will be able to accelerate its investment plan and its international growth as explained in its 2014-2018 business plan (download here the business plan).
Alessandro Malavolti, ceo of Ama, which is controlled by the Malavolti family itself, stressed that “this deal is a crucial turn for the company after the 2009-2010 crisis. I’m very proud to have Prudential as a stakeholder in Ama group. I see this deal as a great demonstration of confidence by a high-end standing investor in an Italian SME and in Italian entrepreneurial skills”.
Ama Group has been supported for the deal by JCI Capital and Mazars-advisory division as financial advisors while Studio Legale Barbieri Sutich Barbieri advised the company on legal issues.
Ama reached 145 million euros in revenues in 2014 (up from 135.1 millions in 2013) and an ebitda of 17 millions (from 14.3 millionsi), with a net financial debt of 64 millions (from 65.5 millions) (see here the 2013 financial statements).
