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Ducati Signs $128.7 Million Financing Deal

July 28, 2005
Filed under Features

Ducati Motor Holding S.p.A. says it signed a loan for Euro 100 million ($127.81 million) on May 9 that was, in part, used to pay a bond which matured May 31.
The financing agreement, organized by Unicredit Banca Mobiliare, was funded by Unicredit Banca d’Impresa, Banca Intesa, Banca Nazionale del Lavoro, Carisbo, Fortis Bank, Monte dei Paschi di Siena and Banca Popolare di Bergamo.
The loan involves a credit line for a total of Euro 63.6 million, which matures 5 years from the date of the contract’s signing; and a revolving credit line for a total of Euro 36.4 million with a one-year renewable expiry date.
Ducati says the financing was used to repay the outstanding Euro 54.2 million of a Euro 100 million bond that matured May 31, 2005; plus other requirements related to the company’s working capital, including Ducati Corse’s payment of last year’s “Ducati Corse” brand purchase.
“We are very satisfied with the outcome of the company’s re-financing operation,” Federico Minoli, President and CEO of Ducati, said in a prepared statement. “This financing, with its favorable economic conditions, will allow us to concentrate fully on our product development plans.”
In other Ducati news, a new Board of Directors was appointed at the company’s annual meeting of shareholders on May 5.
The new Board of Directors is composed of Federico Minoli, Mauro Benetton, Massimo Bergami, David Bonderman, Abel Halpern, Andrea Lipparini, Paolo Pietrogrande, Dante Razzano, Giorgio Seragnoli, Giles Thorley and Ulrich Weiss.
Ducati’s revenues for 2004 were Euro 382.8 million, up 1.0% excluding foreign exchange effects (or down 1.4% including forex effects) versus 2003. EBITDA was Euro 39.1 million, up 2.3% excluding forex effects (or down 13.5% including forex effects).
Ducati’s full-year 2004 shipments dropped 4.8% from full-year 2003. The company says 36,089 units were registered worldwide in 2004, down 5.2% from the 38,088 registered in 2003. Full-year registrations in the U.S. were 5,673 units, up 15.1% from the 4,927 units moved in 2003. Revenues from the U.S. accounted for 15.6% of the company’s total revenues, compared to 13.1% in 2003.
Ducati says profits from sales and sponsorships covered 85% of racing costs in 2004 versus 38% in 1998. In 1998, the company spent Euro 9 million on racing and recouped Euro 3.4 million in profits from sales and sponsorships. In 2004, the company spent Euro 30.0 million and recouped profits of Euro 26.1 million.

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