The Italian market for private debt keeps its momentum as an effective alternative to traditional bank credit.
Sicily dairy products manufacturer Zappalà, which belongs to the eponymous family, listed a short-term minibond of 0.5 million of euros on Milan ExtraMot Pro (see here a previous post by BeBeez). The liability will mature in November 2018 and pay a 3.75% coupon. Last year the issuer posted revenues of 44 million (38.5 million in 2016) and an ebitda of 1.8 million (1.4 million in 2016). Last year the company generated 44 million of sales and an ebitda of 1.8 million. In 2008 Cape Live acquired 49% of Zappalà for 10 million which valued the company 51.5 million on the ground of sales of 57.2 million and an ebitda of 6.1 million in 2007.
Italian soccer team AC Milan called for an extraordinary shareholders meeting for discussing the possibility to defer the maturity of the company’s Vienna listed bonds worth 73.7 million of euros and 54.3 million that hedge fund Elliott subscribed (see here a previous post by BeBeez). Both bonds pay a 7.7% coupon and may mature in October 2018. AC Milan borrowed further 175 million from Elliot at a rate of 11.5% and has to repay such amount also in October. Chinese entrepreneur Yonghong Li, the controlling shareholder of AC Milan, hired BofA Merrill Lynch, to find new investors for the club’s liabilities. Hps Investment Partners, a spin-off of US hedge fund Highbridge, could be interested even though it previously held talks with Elliot on this matter without reaching an agreement.
