Sogefi (Cir group): private placement of bonds in the United States for approximately 115 mln €

This deal in two tranches confirms institutional investors’ appreciation of the company. As well as improving the debt profile, the fresh resources also ensure further backing for the organic growth of the group internationally and its investments in technology and competitiveness


Milan, May 20 2013 Sogefi, the automotive components company belonging to the CIR group, has successfully completed a US private placement of bonds with prime US institutional investors for an amount of 115 million dollars. The bond has a maturity of 10 years and starts amortizing after four years. The company will also in the next few days be closing a second issue of 25 million euro with bullet repayment after seven years. The total amount of the two deals in euro is approximately 115 million. After Sogefi has hedged all the exchange rate risk, the average fixed rate coupon of the two issues will be 5.6%. The bonds require compliance with certain covenants in line with market practice for such deals.

This deal confirms international institutional investors’ appreciation of the Sogefi group’s financial and economic solidity, its technological and managerial competence, its competitive positioning and the global growth strategy of the Sogefi group, despite the difficult situation in the European car market.

The fresh resources thus raised, as well as improving Sogefi’s debt profile by extending the average maturity of its debt and diversifying its funding base, will also increase the financial flexibility of the group and ensure further support for its planned organic growth internationally in countries with higher development potential and its investments in innovation and competitiveness.

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