Italian companies are still issuing minibonds. However, the market faces also defaults. Meanwhile, the NPLs market is very active and the secondary market starts to be hot.
Italian Entertainment Network (IEN), a media company, issued through a private placement two Vienna-listed secured bonds totally worth 36 million of euros that Pricoa Capital, a fund of Prudential group, subscribed (see here a previous post byBeBeez). A first tranche of the bonds is of 26 million, while further portions will be of 10 million. The liabilities will mature in April 2023 and April 2024. IEN has revenues of 160 million
Pasta Zara, a pasta producer based in the North East of Italy, applied for receivership after having missed the payment of a biannual 6.5% coupon of a 5 million of euros worth Milan-listed minibond due to mature in March 2020 (see here a previous post by BeBeez). On 28 February, Finanziaria Internazionale Investments and the other bondholders didn’t accept the company’s shareholders request to keep the debt in stand-still until 30 June 2018. Last year the company posted a loss of 25.7 million partially due to the write off of its 9 million investment in Veneto Banca and Banca Popolare di Vicenza, with net equity dropped to 77.3 million euros and the net financial debt almost worth 200 million or 1,5x the net debt instead of the 1.8x target. The company has revenues of 250 million with an ebitda of 24 million. Emanuele Bragagnolo founded the company at the end of the 19th century. Fourth generation family members Furio (chairman), Arianna, Umberto, and Franca are now managing the business. In 2012 Pasta Zara sold a stake of 11.76% to Simest, the development capital arm of Cassa Depositi e Prestiti, while Friulia, the financial firm of Friuli Region, has 11.25%.
Fecs Group, a company that collects and transforms aluminium, listed on Milan a 4.25% coupon bond with an amortizing remboursement structure starting from 30 June 2020 and due to mature in December 2024 (see here a previous post by BeBeez).Banca Finint acted as arranger and placement agent for such issuance. Last year Fecsposted revenues in the region of 185 million (178.8 million in 2016) with an ebitda of almost 12 million (10 million). In 2016 the company’s net financial debt were of 89 million.
Unicredit is considering the sale of secured NPL with a gross value of 3 billion of euros through a securitization similar to the Sandokan project it implemented in 2015 (see here a previous post by BeBeez). The bank may not auction the portfolio, but would entertain direct talks with potential buyers Pimco, Gwm, and Finance Roma, the same counterparts of the Sandokan Project joint venture.
Christofferson, Robb & Company (Crc) and Bayview could sell by June a portfolio of NPLs worth 2 billion of euros, part of the amount of non performing loans that the firm purchased last year from Intesa Sanpaolo (see here a previous post by BeBeez).Crédit Agricole is also selling on the secondary market a portfolio of NPLs worth 6 billion.Â
Creval sold to Credito Fondiario a portfolio of gross secured NPLs worth 222 million of euros at 41% of their gross value (see here a previous post by BeBeez). Credito Fondiario invested more than 600 million in NPLs and is handling above 40 billion of NPLs portfolios. Creval achieved its derisking targets with such sale in view of keeping its NPE below 10% by 2020. The bank will sell a further NPL portfolio worth 1.6 billion through a securitisation with Gacs. Between 2019 and 2020 will offload gross NPLs for 80 million.
