Spigadoro, Inc. (AMEX: SRO), a leading manufacturer of branded products in the Mediterranean food sector, today announced that it had executed a standby credit facility of 60 billion Italian Lire (approximately $30 million). The proceeds of the facility are to be used by the Spigadoro group for working capital purposes, including acquisitions.
The term of the facility is 18 months and outstanding balances will bear interest at 0.75% above EURIBOR (currently 3.918%).
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The banking syndicate, which consists of 10 Italian banks, was arranged by Monte dei Paschi and co-arranged by Banca Nazionale del Lavoro, two large Italian banks.
Carlo Petrini, Co-Chairman of Spigadoro, noted: “The extension of this facility will significantly enhance our flexibility to consummate acquisitions. Together with approximately $20 million in cash, we are well-positioned to build upon the Gazzola acquisition and aggressively pursue our consolidation strategy, while at the same time minimizing shareholder dilution. We are also very pleased with the attractive terms extended by our lead banks.”
Earlier this week, Spigadoro announced the acquisition of Pastificio Gazzola, the European market leader in private label pasta production. The Company noted that Gazzola was the first of several acquisitions that it intended to consummate this year in accordance with its strategic goal to consolidate small and mid-cap companies within the food and animal feed industries in Europe.
About Spigadoro
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By GlobalDataSpigadoro is a leading manufacturer of branded products in the Mediterranean food sector. Its pasta and other Mediterranean products are internationally recognized as high quality products and are marketed under the brand name “Spigadoro” (“Golden Ear of Wheat”) in Italy, Europe, the U.S. and the Far East. The Company’s animal feed products are manufactured at seven plants throughout Italy and are marketed under the “Petrini” name. The Company has previously announced an aggressive growth strategy that includes a consolidation of small and mid-cap companies within the food and animal feed industries in Europe (and in particular Italy, Germany, France and Spain).
Statements in this press release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Such statements, including those regarding among other things, our strategy, future prospects and results of operations, are dependent on any number of factors, including market conditions, competition and the availability of financing, many of which are outside of our control. Actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in our Securities and Exchange Commission filings under “Risk Factors”, including the following risks related to the Petrini transaction: we are operating a new business; if we do not successfully sell our computer business, the combined company may be adversely affected; Vertical Financial Holdings and its affiliates will have substantial voting power; our strategy of acquiring other companies for growth may not succeed and may adversely affect our financial condition and results of operations; we are subject to numerous risks related to foreign operations; and other risks. In addition, our acquisition negotiations are in various stages and, except as previously announced, we have no agreement or arrangements relating to any acquisitions. We are unable to predict whether or when any of these negotiations will result in any definitive agreements.
