Italy's Leonardo to repay early 500-million-euro term loan
Reuters
Published Dec 13, 2022 17:48
ROME (Reuters) - Italy's defence and aerospace group Leonardo announced on Tuesday the early repayment of a 500 million euro ($532 million) term loan, as part of efforts to reduce debt and the impact of rising interest rates.
The company also announced the pricing of the redemption of the entire nominal amount of the 7.375% Notes due in 2039 and 6.25% Notes due in 2040 for an outstanding principal amount of $123.63 million and $181.46 million respectively.
The bonds will be redeemed on Dec. 15, for a total overall payment of $171.56 million for the 2039 maturity and a total of $231.6 million for the maturity 2040.
"These finalised transactions confirm the path to reduce the group's gross debt, taking advantage of current market opportunities," CEO Alessandro Profumo said in a statement.
"The early repayment of the term loan ... will allow us to reduce the gross debt of 500 million euros and to contain the cost of interest in 2023 while, through the redemption of our bonds issued in the US, we will pay down the most expensive financial instruments in our balance sheet," he added.
The term loan, which had been due to mature next November, will be repaid on Dec. 29.
Last month, when it presented its third-quarter results, Leonardo lowered its guidance for full-year 2022 net debt to around 3 billion euros, from a previous objective of around 3.1 billion euros. ($1 = 0.9405 euros)
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Written By: Reuters
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