Italy’s Buzzi launches US bonds worth $172m

Italy’s Buzzi launches US bonds worth $172m
Published: 21 October 2004

Italy’s Buzzi Unicem has issued a total of $172m in senior unsecured notes via private placements in North America to fund a stake purchase in cement maker Dyckerhoff, the company said.

Investment bank Merril Lynch advised the company on the deal, which comprises three tranches with maturities in 2007, 2009 and 2011.

The first tranche of US$25m has a fixed annual rate of 4.41 percent.  The second of EUR15m ($18.89m), callable from 2006, is priced at a floating rate at 70 basis points over 6-month Euribory. The third tranche of $128 million at a fixed annual rate of 4.90 percent.  The three tranches have been converted through a swap deal into a synthetic 142 million euro loan at a floating rate interest rate of 55 basis points over 6-month Euribor.

Buzzi said the deal has boosted its long-term debt to some EUR1.63bn from EUR1.48bn while cash and equivalents rose to EUR804m from EUR662m.

Buzzi Unicem said it would use the proceeds to pay EUR418.5m for a 24.2 percent stake in Buzzi-controlled Germany’s Dyckerhoff.