The bonds will mature in 2027 and pay high coupons (Il Sole 24 Ore Radiocor) – Milan, 24 June – Another tile for Golden Goose. With the failure of the listing on Piazza Affari, which should have taken place last week, the fashion company is forced to pay substantial interest until May 2027 on the loan of almost half a billion euros issued in 2021. Interest that instead could have save by withdrawing the bond from the market.
This operation, however, was expected from the outset to be closely linked to the IPO.
Taking a step back, on 14 May 2021 the fashion brand controlled by Permira issued a 480 million euro bond, with a variable coupon linked to the three-month Euribor, plus a margin of 487.5 points. Today, to be clear, considering that the three-month Euribor is around 3.68%, the yield on the bonds is close to 9%. For example, the coupons paid in the last year had a rate of 8.7% on May 15th, 8.77% on February 15th, 8.87% on November 15th 2023, 65% on 15 August 2023 and 8.19% on 15 May 2023. With today’s interest rates, the company would therefore be forced to pay around forty million a year in coupons. However, much will depend on the trend in interest rates, which if they fall will lower the interest that the company will have to pay. In the documents, signed by the CEO Silvio Campara, we read that Golden Goose itself could have withdrawn the bonds from the market by 25 June 2024 (tomorrow), but only if certain conditions were met, primarily the listing of the company on the stock exchange itself. In more detail, in the event of redemption, Golden Goose would have put 484.7 million on the table, of which 480 in repayment of the bond and approximately 4.7 million in interest accrued from the last coupon of May 15, to the date of withdrawal of the bond. bond, i.e. June 25th. At this point, however, since the landing on Piazza Affari has faded, Golden Goose is forced to honor its debt and coupons until 2027, hoping that the ECB will continue to cut interest.
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(RADIOCOR) 24-06-24 18:00:05 (0514) 3 NNNN
