Italian paper packaging producer Pro-Gest prepares to issue a 250 million euros senior unsecured bond maturing in 2024. Moody’s assigned preliminaryr rating to Pro-Gest and B2 rating to the proposed bond with stable outlook.
Proceeds from the notes will be used to refinance part of the existing indebtedness, to pre-fund capital expenditures, and to pay transaction fees. The capital structure also includes a secured export credit facility of 50 million euros, medium and long term facilities of 49 millions, Italian minibonds of 90 millions (issued by subsidiary Cartiere Villa Lagarina and listed at the ExtraMot Pro market) and finance leases of 16 millions. At close, Moody’s expects Pro-Gest to have 175 million euros of cash in the balance sheet, and approximately 70 millions of it will be contributed to Cartiere Villa Lagarina as equity to fund capital expenditures in connection with the refurbishment and development of the Mantova Mill.
Last May Pro-Gest issued in a private placement two bonds for a total of 61 million euros. The issue was aimed at financing the last investment in the refurbishment of the Mantova Mill. As said, previously the group, which is controlled by Italian entrepreneur Bruno Zago and aiming to list shortly at the Italian Stock Exchange, had listed three minibonds in two tranches at the ExtraMot Pro through its subsidiary Cartiere Villa Lagarina.
Last July Pro-Gest bought O.G. spa (formerly Ondulati Giusti spa) and CF spa (formerlyCartonificio Fiorentino spa) from a bankrupcty procedure.
Moody’s says taht the group posted 467 million euros in consolidated revenues in the last 12 months ending on September 30th 2017 with a 96,7 milioni ebitda, after having closed FY 2016 with 445 million euros in revenues and a 103.71 millions in ebitda. Consolidated statements 2015 showed instead 451.2 million euros in revenues, 95.4 millions in ebitda and a 131.1 million euros net financial debt (see here an analysis by Leanus, after free registration and login).
