Successful Completion of Bond Issuance
The transaction attracted strong interest from institutional investors and was significantly oversubscribed. FIS – Fabbrica Italiana Sintetici, a prominent Italian company recognized for its development and production of active pharmaceutical ingredients (APIs), recently completed a remarkable €770 million bond issuance.
Details of the Bond Issuance
This issuance comprises two types of senior secured notes. The first is an aggregate principal amount of €300 million, bearing a 5.250% interest rate per annum, issued at its nominal amount. The second type consists of senior secured floating rate notes totaling €470 million, which bear interest at three-month Euribor plus 325 basis points. Collectively, these are termed the "Notes" and have already been listed on the Official List of the Luxembourg Stock Exchange, enabling trading on the Euro MTF Market.
Maturity and Financial Flexibility
The Notes are set to mature in five years, due in February 2031. In tandem with this issuance, FIS has upsized its existing revolving credit facility from €80 million to €160 million, bolstering the Group's liquidity position and enhancing its financial flexibility.
Market Confidence Boosted
The bond offering witnessed a remarkable oversubscription, reflecting the market’s confidence in FIS’s strategic vision and solid financial standing. Such positive investor responses reinforce the strength of FIS's business model and its commitment to sustainable growth.
Improved Credit Ratings
In relation to this issuance, FIS received an upgrade of its Corporate Family Rating (CFR) from Moody's, elevating its rating from B3 with a positive outlook to B2 with a stable outlook. Similarly, Fitch Ratings upgraded its Issuer Default Rating (IDR) from B to B+ with a stable outlook. Meanwhile, Standard and Poor's affirmed its Issuer Credit Rating (ICR) of B with a stable outlook. The respective ratings for the Notes are B2 (Moody's), BB- (Fitch), and B (S&P).
Leadership Insights
Daniele Piergentili, CEO and Chairman of FIS, expressed satisfaction with the bond issuance's outcome, stating, “The strong investor response reflects the market's confidence in our business model and long-term strategy. This transaction confirms our commitment to pursue growth while maintaining a solid and flexible financial structure.”
Key Players in the Issuance
Several financial institutions played crucial roles in this successful bond issuance. BNP Paribas and Goldman Sachs International acted as joint global coordinators and physical bookrunners, with Nomura also joining as a global coordinator. Additional bookrunners included Banca Akros, Barclays, BofA Securities, BPER, Citigroup, Intesa Sanpaolo, J.P. Morgan, KKR, Morgan Stanley, RBC, and UniCredit.
About FIS
Founded in 1957 in Italy, FIS has established itself as a leader in the production of APIs for the global pharmaceutical industry. With a workforce exceeding 2,300 employees, including around 270 dedicated to research and development, the company operates multiple plants in Italy and possesses commercial offices in North America and Japan. It also maintains operations in China and India, making it a pivotal player in the Contract Development and Manufacturing Organization (CDMO) sector.
Contact Information
Micaela Colamasi, Head of Corporate & Product Communication, can be reached at Ph. +39 338 71 88 939.
Frequently Asked Questions
What was the amount of the bond issued by FIS?
FIS successfully issued €770 million in bonds.
What types of notes were included in the bond issuance?
The bond issuance included both fixed rate and floating rate notes.
Who were the financial institutions involved in the bond issuance?
Key players included BNP Paribas, Goldman Sachs, and Nomura, among others.
What is the maturity period for the bonds?
The bonds have a maturity of five years, due in February 2031.
What strategic significance does this bond issuance hold for FIS?
This issuance enhances FIS's financial flexibility and reflects strong market confidence in its business model.