ChemChina deal to trigger loan repayments – Pirelli
15 Oct 2015
Share:
Milan, Italy – China National Chemical Co.’s pending takeover of majority control of Pirelli & C. SpA will trigger the possibility that creditors of two Pirelli private placement loans worth about $193 million (€168.8 million) could seek early repayments, according to Pirelli.
With Marco Polo Industrial Holding SpA – ChemChina’s Italian vehicle for its takeover attempt – having acquired more then half of Pirelli’s ordinary capital, the Milan-based tire maker pointed out that this would represent a “change of control” event that would trigger the early reimbursement clause.
Marco Polo Industrial Holding disclosed Oct. 13 it intends to pay for shares being tendered on Oct. 20.
The two financing vehicles – a US private placement worth $150 million and a German loan with a residual value of $43 million – are headed by Pirelli International Ltd. and guaranteed by Pirelli & C. SpA and Pirelli Tyre SpA.
Eventual reimbursement requests would be satisfied via already available lines of credit and without the need to resort to new financings, Pirelli said.
This article is only available to subscribers - subscribe today
Subscribe for unlimited access. A subscription to European Rubber Journal includes:
Every issue of European Rubber Journal (6 issues) including Special Reports & Maps.
Unlimited access to ERJ articles online
Daily email newsletter – the latest news direct to your inbox