Ducati Motor Holding S.p.A. says it signed a loan for Euro 100 million ($127.81 million) on May 9 that will, in part, be used to pay a bond set to mature May 31.
The financing agreement, organized by Unicredit Banca Mobiliare, will be 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 will be used to repay the outstanding Euro 54.2 million of a Euro 100 million bond maturing on 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.”
Copyright 2005 Powersports Business