Losán has established its first Commercial Paper program in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding amount of 25 million Euros. The program will allow the company to access qualified investors to diversify its short-term financing instruments, to achieve a wider spectrum of funding sources and optimize its debt management in terms of maturity profile and pricing.
The CP programme will allow the Company to issue debt with maturities of up to two years over the next 12 months.
The Group was established in 1964 in Galicia. It is made up of several multinational companies engaged in the production and marketing of a variety of wood-based products. Losán specializes in offering customized solutions in areas such as melamine, natural wood veneers, panels and components, as well as chipboard, veneer and plywood, and flooring used in the furniture, decoration and equipment industries. Additionally, Grupo Losán has six renewable energy generation facilities, as well as four natural gas cogeneration plants and two biomass plants. It also manages technical facilities related to sawmilling, pallet block production and digital printing.
The company has production plants in Spain, the Netherlands, Romania and the United States, and its products are marketed in more than 80 countries. As of 2022, the Group had a turnover of 344.6 million euros and an EBITDA of 16.6 million euros. Currently, the Group employs over 1,500 workers.
Commercial Papers are an efficient source of funding.
Commercial paper programmes are short-term money-market securities used as a funding source by financial institutions, as well as governments, supranational agencies, and mid and large corporations.
For corporate issuers, Commercial Papers are an extremely efficient funding source, that is complementary to banking facilities and credit lines. It is an efficient working capital solution via Debt Capital Markets.
Commercial Papers are issued under a shelf programme, that has an annual validity (renewable) and a predetermined maximum outstanding size. Notes under a CP programme may be issued at a discount or at a premium, they may bear fixed or floating rate interest. Although CPs, most usually, carry an implicit coupon, they are issued at discount and mature at par (100%)
Maturity of Notes ranges from 3 days to 24 months for programmes and from 1 to 364 days for ECP (European Commercial Paper Programmes).
Commercial Papers are multi-currency instruments that can be issued in different currencies, predominantly in EUR, USD, CHF and GBP. They have a minimum denomination of €100K and are intended for wholesale institutional investors, both national and international.
Category: CP Programmes
Source: BME (See the entire post here)