(Alliance News) - Webuild Spa announced the terms of its fixed-rate senior unsecured bonds on Wednesday.

The net bond proceeds will be used to repay the company's existing debt, including through the repurchase of all of the EUR500.0 million notes to Oct. 26, 2024, and part of the EUR750.0 million notes to Dec. 15, 2025, and for general purposes of the Webuild group.

Massimo Ferrari, general manager of the group, commented, "The successful placement of Webuild's new bond confirms the significant appreciation by the international and domestic financial community of the strategy pursued and the profound changes Webuild has undergone in recent years."

The new bond issue, of EUR500 million with a maturity of five years, follows "the extraordinary results of the group, which has seen its order book double in recent years, improving its quality, while simultaneously maintaining a solid net cash position and reducing leverage," the company said.

The group, today, after intensive de-risking in the recent past and thanks to the countless measures put in place for continuous improvement in cash generation, is well positioned to achieve the targets set for 2024, according to the company.

"We will continue to mobilize all resources and energies to ensure occupational health and safety, infrastructure sustainability and cash generation for the benefit of all stakeholders as key prerequisites to continue our and the industry's growth process, in collaboration with the entire supply chain."

The total principal amount of the new bonds is EUR500 million, with a subscription price equal to 100 percent of their face value. The maturity date of the new bonds is June 20, 2029, and the related annual coupon is 5.375 percent.

The results achieved with this new transaction showed a strong appreciation of Webuild by the domestic and international financial community, with interest received from more than 150 investors, and a demand of about 2.5 times the offer, which allowed for a reduction in the final rate applied, compared to the initial launch rate. Of particular importance was the demand from international investors, more than 78 percent of the total, mainly from the UK, Germany and France.

"The issuance of the new bonds allows Webuild to accelerate the process of rescheduling the maturities of Webuild Group's debt, lengthening its average life, and manage the next main corporate debt maturity, scheduled for October 2024, well in advance."

BNP Paribas, BofA Securities Europe SA, Goldman Sachs International, HSBC Continental Europe, Intesa Sanpaolo Spa, JPMorgan SE, Natixis and UniCredit Bank GmbH are acting as joint lead managers.

Webuild's stock closed Wednesday up 0.9 percent at EUR2.05 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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