Industry News
Ferretti Debt Proposal Accepted by RBS
Details regarding Ferretti's debt restructuring proposal have come to light this week with the Italian shipyard announcing that The Royal Bank of Scotland (RBS) has accepted their debt re-structuring proposal for the senior loan and financing pool of mezzanine lenders. Seen as the first step in strengthening Ferretti S.p.A’s financial situation, the acceptance of this debt proposal represents the crucial first step in a salvage plan.
As reported by Synfo.com, the plan goes on to detail the following:
- Slashing the long-term debt in half from €1.1billion to €550million, against a conversion of credits into exit participation rights.
- An inflow of funds via a capital increase of €85million, €70million of which will be underwritten by Chairman Norberto Ferretti and by some of the Group management. The remaining €15million will be underwritten by Mediobanca - Banca di Credito Finanziario S.p.A., though the terms and agreement are currently under negotiation and require further definition.
- Working capital requirements up to €65million granted through RBS's medium-term credit facilities.
- An extension from short-term to medium-term credit facilities for a further €24million granted by three of the Group's big financial partners.
Synfo.com goes on to reveal that Candover, a leading European private equity house, and Permira, a leading private equity group, will no longer be included in the shareholder structure. The equity will be re-structured to represent the following:
Norberto Ferretti and Group's management: 38.5%
Mediobanca: 8.5%
Senior and mezzanine lenders: 53% in exit participation rights
In addition, Norberto Ferretti, Group Management and Mediobanca will hold 100% of the voting rights for the Group.
According to Synfo.com, the Group is hoping that the salvage plan will provide them with the capital strength to retain their market leading status and to help them face the challenges of the next five years. Throughout the transaction, Ferretti was assisted by Rothschild as Financial Advisor, Chiomenti Studio Legale and Linklaters as legal advisors and CBA Studio Legale e Tributario. Ashurst (associated to Ashurst LLP) assisted RBS, while Clifford Chance and Lazard assisted the other financial institutions involved in the role of financial advisors.
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Published: 5th May 2009
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