|  
News

Fedrigoni finalises acquisition of Ritrama

Photo shows Marco Nespolo, CEO of Italy's fine and speciality paper manufacturer Fedrigoni.
Marco Nespolo serves as CEO of Bain Capital's Fedrigoni
group as of November 2018. Photo courtesy of Fedrigoni
03 Feb 2020 − 

Fedrigoni's controlling entity Fabric offers €225m in senior secured notes to refinance debt related to Ritrama acquisition. Moody's downgrades Fabric.

Italy's fine and speciality paper and materials producer Fedrigoni, a Bain Capital company, has completed the acquisition of self-adhesive label manufacturer Ritrama (Ri.Tra.Ma Rink Tading and Manufacturing Spa), Coating Ricofin and Eurotac, and their respective subsidiaries. The deal was announced at the end of October last year. The EC approved the deal in December.

Ritrama boasts leading position among independent suppliers of self-adhesive labels and materials in Europe and is considered one of the global players in the market with production facilities and distribution centres in Europe, Central and Latin America, China and the US.

Fabric offers €225m bond to refinance Ritrama deal

The acquisition of Ritrama was financed by "cash on hand" and "through drawings under a senior bridge facilities agreement" in the amount of €225m signed with the BNP Paribas, announced Fabric (BC) Spa, a controlling entity of Fedrigoni. The proceds from the senior bridge facilities were also used to finance Ritrama's group's indebtness and for paying fees and expenses related to the Ritrama deal, it said.

In order to refinance the idebtness related to the acquisition of Ritrama, Fabric (BC) plans to offer a €225m in senior secured floating rate notes due 2026. This adds to €455m and €125m senior secured notes offered to refinance the acquisitions of Fedrigoni and Gruppo Cordenons in 2018 and 2019. 

Following the recent announcement on the issuance of senior secured notes, credit rating agency Moody's downgraded the corporate family rating (CFR) of Fabric (BC) to B2 from B1, and asigned a B2 rating to the company's new €225m senior secured notes. At the same time, Moody's confirmed the B2 on the company's €580m senior secured floating rate notes due 2024.

This article is part of our coverage on Fedrigoni-Ritrama deal and the fine an sepcilaty paper industry in Europe. The full article will be publilshed in EUWID Pulp and Paper no 6/2020 on 5 February.

To gain full access to company news and in-depth market and price reports on major paper and board grades, raw materials and consumables consider subscribing to EUWID Pulp and Paper or start a three-week free trial.

previous − Billerud Korsnäs: Impact of three-week strike in Finland limited

Strike in Finland’s paper industry extended by another week  − next