Record Go Alquiler Vacacional has registered its first Commercial Paper Programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 50 million euros. The Commercial Paper Programme will enable the company to issue debt with a maturity of up to two years over the next 12 months. This is the first time that the company has gained access to capital markets to finance itself and diversify its resources.
Record Go Alquiler Vacacional is a Spanish car rental company with over 20 years of experience within the sector. Its management philosophy is based on creating tailor-made products for each type of customer, integrating technology into the rental process, and maximising the price-quality relationship.
The main business activities of the company are the renting of vehicles and the sale of second-hand cars.
Record Go operates a broad-based business model in terms of the vehicle’s life cycle, from its acquisition from manufacturers and suppliers to its marketing and sale, including rental, favouring its integration level.
Record Go has physical marketing points in the main tourist destinations of Spain, Portugal and Greece.
In 2021 Record Go Alquiler Vacacional had revenues of 83.2 million euros and an EBITDA of 27 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 with a predetermined maximum outstanding size, and that are renewable annually (or every 3 years for STEP label). CPs may be issued at a discount or at a premium, they may bear fixed or floating rate interest, although they most usually carry an implicit coupon.
Maturity of Notes ranges from 1 to 364 days for ECP (European Commercial Paper Programmes), up to 24 months for Spanish Pagarés and up to 36 months for Italian Cambiali Finanziaria.
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.
Source: BME (See the entire post here)