placed secured bond exchangeable into ordinary shares

Webuild is preparing to close trading with a collapse of almost 10 percentage points. The construction stock literally sank in today’s session following the announcement on placement of secured bonds for a total of 225 million euros. Wabuild prices slipped just above 2 euros (session minimum) and then rose slightly to 2.06 euros.

Due to the real rush to sell Webuild shares that is underway today, the stock has further worsened its already negative monthly performance which is now equal to 5.4 percent. Conversely, the performance of construction stocks on a monthly basis remains positive for 7 percent.

Salini places bonds exchangeable in Webuild shares

This morning Salini announced theissue of secured bonds exchangeable into Webuild ordinary shares for a total amount of approximately 225 million euros. These bonds, which have a quarterly coupon of 4 percent, will be redeemed at 100% of their principal value on May 30, 2028, barring exchange, early redemption or repurchase and cancellation situations.

The initial trading price of the bonds was set at 2.6 euros, which represents a premium of 25 percent compared to the reference share price of 2.08 euros, corresponding to the placement price of Webuild’s existing shares. The simultaneous placement of existing shares was arranged to facilitate coverage of some bond subscribers.

The bonds will be guaranteed by a pledge on shares equal to 2.5 times the number of shares underlying the bonds. The net proceeds obtained from the issuance of the notes will be used for the early repayment of an existing bank loan and for other general corporate purposes.

The bonds are intended for qualified investors only, with BofA Securities Europe and Intesa Sanpaolo acting as Joint Global Coordinators and Joint Bookrunners both as regards the placement of bonds and as regards the simultaneous offering of existing shares.

Webuild wins a new order in Switzerland

Also today, Webuild also announced that it had been awarded, through its subsidiary CSC Costruzioni, a new order with a total value of over 302 million euros concerning the construction of the New Railway Industrial Plant (NSIF) in Ticino.

The listed share held by CSC Costruzioni is 67 percent for a value of 202 million euros. According to what is established in the agreement, the works will begin in July 2024 and will end at the end of 2027, when the NSIF of the Canton of Ticino will come into operation.

How to invest when a stock plummets

Regardless of the specific case of Webuild, the fact that a listed company is literally swamped by sales (sell-off) does not only have negative implications. From the investor’s point of view, in fact, a collapse is an opportunity to speculate in two distinct ways: upwards if the prospect is that of a quick restart (it is therefore a question of buying shares at a discount and then profiting from the rebound) or downwards (short trading) if instead there are elements to hypothesize that the value of the shares will continue to fall .

In any case, volatility is always a great opportunity for online trading. You can operate with both brokers such as eToro than with banks like Fineco which can boast an excellent trading platform:

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