#Italy #pharmaceuticals #Bond Issuance #FIS #Montecchio Maggiore

FIS Successfully Completes €770 Million Bond Issuance

FIS - Fabbrica Italiana Sintetici, a prominent Italian firm specializing in the development and production of pharmaceutical active ingredients (APIs), recently announced the successful completion of a substantial bond issuance totaling €770 million. This significant move showcases not only FIS's robust growth strategy but also reflects the market's confidence in its operational excellence and financial stability.

Overview of the Bond Issuance

The bond issuance is composed of two main components. The first part involves the issuance of fixed-rate bonds amounting to €300 million, carrying an interest rate of 5.250% per annum, which were issued at 100% of par value. The second part includes variable-rate bonds worth €470 million, tied to the three-month Euribor plus 325 basis points. Together, these securities are listed on the official list of the Luxembourg Stock Exchange and allowed for trading on the Euro MTF market.

Scheduled to mature in February 2031, these bonds will enhance FIS's liquidity position, further reinforcing its financial flexibility. Notably, the issuance was heavily oversubscribed, indicating significant interest from institutional investors and demonstrating their strong belief in FIS's strategic direction and underlying financial fundamentals.

Investor Sentiment

Daniele Piergentili, the CEO and Chairman of FIS, expressed satisfaction with the outcome of this bond issuance. He remarked, “The strong response from investors reflects market confidence in our business model and long-term strategy. This transaction confirms our commitment to continue growing while maintaining a solid and flexible financial structure.” The strategic placement underscores FIS's reputation in the pharmaceutical sector and its resilience against market fluctuations.

In conjunction with this bond offering, FIS also increased its existing revolving credit facility from €80 million to €160 million, which further enhances its financial liquidity and strategic maneuverability.

Credit Ratings

The recent bond issuance has positively influenced FIS's credit ratings. Moody's upgraded its corporate family rating from B3 with a positive outlook to B2 with a stable outlook. Similarly, Fitch Ratings improved its issuer default rating from B with a positive outlook to B+ with a stable outlook. Standard and Poor's confirmed FIS's issuer credit rating at B with a stable outlook. These ratings reflect the creditworthiness of FIS and the increasing faith investors place in its future prospects.

The Role of Top Financial Institutions

In this successful bond issuance, BNP Paribas and Goldman Sachs International acted as joint global coordinators and bookrunners, with Nomura also serving as a global coordinator. Additional support for the offering came from several major financial institutions such as Banca Akros, Barclays, BofA Securities, and Citigroup, among others. Legal guidance for FIS was provided by Latham & Watkins and Ropes & Gray, alongside tax advice from Pirola Pennuto Zei Associati.

About FIS

Founded in 1957 in Montecchio Maggiore, Italy, FIS has established itself as a leading player in the development and manufacture of APIs within the global pharmaceutical industry. Controlling over 2,300 employees, the company has operations across several Italian locations, as well as trading offices in North America and Japan, with facilities in China and India. FIS aims to continue advancing in the CDMO (Contract Development and Manufacturing Organization) sector under the leadership of Daniele Piergentili, who will take on the role of CEO and Chairman from April 2024.

With its recent accomplishments and industry placements, FIS is well positioned for future growth and continued market leadership. As the company navigates the evolving pharmaceutical landscape, its commitment to quality and innovation remains steadfast, supported by strategic financial maneuvers like this recent bond issuance.