Ontime Corporate Union has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 50 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months.
Ontime is an integrated logistics operator, covering the whole logistics process. Its main areas are, among others, full truckload, document management, as well as conventional and digital messaging. The company was founded in 1991 and performs in 22 logistic centres in Spain and Portugal. Ontime has an international presence through the representation of well-known important transport and logistics companies. To adapt to new trends and customers’ needs, Ontime makes constant efforts to develop new business methods and update their quality policies.
The company was granted a credit rating of BB with a stable outlook by Scope Ratings.
As of year-end 2020, Ontime had consolidated revenues of 110.5 million Euros and reached an EBITDA of 16 million Euros.
Commercial Papers are an efficient source of funding
Commercial Papers 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 Pagarés 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.
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