Campari takes a loan of 750 million euros
Davide Campari-Milano further strengthened its balance sheet by setting up a medium-term loan of up to 750 million euros with a consortium of banks.
The Milan-based company, famous for its aperitif and spirits brands including Wild Turkey Bourbon, Grand Marnier and Skyy vodka, will use this facility mainly to repay a loan of 581 million euros which matures at the end of September.
The new short-term facility will expire at the end of June 2021 but may be extended for another six months.
In its annual accounts at December 31, Campari’s net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) ratio was only 1.6, one of the highest in the beverage industry. international.
The new loan, put in place while international interest rates are at record levels, strengthens Campari’s cash and cash equivalents by € 704.4 million (as of December 31, 2019) and its lines of credit existing unused assets of 500 million euros.
Part of this sum will be used to pay shareholders the dividend of 63 million euros due next week and also to continue the company’s 350 million euros share buyback program, which she reaffirmed. today.
Last month, Campari, alongside most of its global competitors, withdrew its guidance for this fiscal year in response to the ravages of the Covid-19 pandemic and its crippling effects on international sales, particularly in duty-free sectors. and tax free.
The company’s statement today reiterated that it was “able to meet all of its financial commitments.”
At the end of June, Campari shareholders will vote for a second time on whether to move its headquarters from Milan to Amsterdam, where Dutch company law will provide additional protection against possible takeovers. This, according to the group, is part of its long-term strategy.
It would also strengthen the control of the group by the Garavoglia family.