After the separation from Cnh Industrial, Iveco has subscribed a €1,9 billion syndicated loan with a pool of banks. The company announced it on Tuesday evening in a note, specifying that the operation includes a €1,4 billion committed revolving credit line (which has a duration of 5 years with two extension options of one year each) e a committed term loan of 0,5 billion with a maturity of one year, renewable up to a further year at the option of the company.
The syndicated loan, the company underlines, will be used "for the general business needs and for the needs linked to the working capital of the Iveco Group and confirms the strong support for the Iveco Group from its primary international relationship banks".
The pool of banks is made up of the following institutes: Banco Bilbao Vizcaya Argentaria, Barclays, Bnp Paribas, BofA Securities, Citi, Deutsche Bank, Intesa Sanpaolo, Mediobanca – Banca di Credito Finanziario, Mizuho Bank, Santander CIB, Société Générale and Unicredit as Bookrunners and Mandated Lead Arrangers.
Meanwhile, he continues the recovery of the Iveco share on the Stock Exchange. After the 9,1% collapse recorded on Monday, the day of the IPO, and the 6% rebound achieved yesterday, today in mid-morning the shares rose again by 4,5% (to 11,192 euros), achieving posting the largest rise in the Ftse Mib, which in the same minutes travels in slightly positive territory (+0,2%).
On Tuesday, Equita analysts had begun covering Iveco stock with a "buy" opinion and a target price of 18 euros, explaining that the group has "the resources to relaunch itself, but M&A is essential to accelerate".
As for the former Iveco parent company, Cnh Industrial, Fitch upgraded its long-term credit rating from BBB- to BBB+. The agency also upgraded CNH Industrial Finance Europe's senior unsecured debt rating, again from BBB- to BBB+. The outlook is stable. According to Fitch, CNH Industrial will retain just over 50% of total revenues and 66% of EBIT on a consolidated basis after the Iveco spin-off.
“The corporate profile of the remaining company is likely to weaken due to the reduced diversification of the end market and a narrower product range”, underlines the agency, which however believes that this is mitigated by the issuer's greater exposure to the market agriculture (82% of revenues), less cyclical than the truck business. Fitch therefore expects CNH to have higher margins than in the past, in line with those of agricultural machinery manufacturers.
