#Italy #Bond Issuance #FIS #Montecchio Maggiore #Pharmaceutical Ingredients

FIS Successfully Completes €770 Million Bond Issuance

FIS, or Fabbrica Italiana Sintetici, has made headlines by successfully concluding a significant bond issuance worth €770 million. This transaction, which has captured the attention of institutional investors, reflects robust investor confidence and a substantial oversubscription.

The issuance is split into two parts: €300 million of fixed-rate senior secured notes with an annual interest rate of 5.250% and €470 million of variable-rate senior secured notes. The variable bonds are linked to a three-month Euribor rate plus a margin of 325 basis points. This dual structure allows FIS to optimize its cost of capital while appealing to a diverse range of investors.

The bonds are set to mature in five years, specifically in February 2031, and have already been listed on the Luxembourg Stock Exchange, providing further liquidity to investors. In conjunction with the bond issuance, FIS has doubled its existing revolving credit facility from €80 million to €160 million, enhancing its financial flexibility and liquidity amidst a challenging market environment.

The response from the market has been overwhelmingly positive, highlighting FIS’s solid business model and financial fundamentals. The success of this issuance not only emphasizes investor confidence but also marks a pivotal moment for FIS as it continues to drive its growth strategy forward.

Following this development, FIS saw an upgrade in its Corporate Family Rating (CFR) from Moody's, moving from B3 with a positive outlook to B2 with a stable outlook. Similarly, Fitch Ratings upgraded the Issuer Default Rating (IDR) from B to B+ with a stable outlook, further solidifying the company's enhanced creditworthiness. Standard & Poor's has maintained its credit rating at B with a stable outlook, reflecting the overall positive trajectory of FIS.

Daniele Piergentili, the CEO and President of FIS, expressed satisfaction with the results of the bond issuance, stating, "The strong response from investors reflects market confidence in our long-term strategy and business model. This transaction reaffirms our commitment to fostering growth while maintaining a solid and flexible financial structure."

The global coordinators and joint bookrunners for the issuance include reputable firms such as BNP Paribas and Goldman Sachs International, indicating the high caliber of interest and collaboration in this financial endeavor. Additionally, various banks have contributed as joint placers, further showcasing the wide-ranging support for FIS's financial maneuvers.

Founded in 1957 and headquartered in Montecchio Maggiore, Italy, FIS is a significant player in the development and production of Active Pharmaceutical Ingredients (APIs) for the global pharmaceutical industry. With over 2,300 employees across three facilities in Italy and more business operations in North America, Japan, China, and India, the company is well-positioned within the contract development and manufacturing organization (CDMO) sector.

In summary, FIS’s recent bond issuance marks a strategic victory, demonstrating enhanced investor trust and commitment to sustainable growth within the pharmaceutical industry. As the company continues to evolve under the leadership of Daniele Piergentili, stakeholders can anticipate exciting developments that align with their strategic objectives and financial guidelines.