GAM has incorporated a new Commercial Paper programme in the Alternative Fixed Income Market (MARF) for a maximum amount of 50 million euros and maturities of up to 24 months.
At an operational level, the company is very active in adding and expanding business lines. With this program, the company will be able to diversify its sources of financing and issue short-term debt over the next 12 months.
GAM was founded in 2003 in Asturias (Spain) and nowadays is present in ten countries around Europe, South America, Africa and Asia. GAM specializes in machinery rental for lifting, energy, events, structures and handling. GAM’s machinery is mainly used in sectors such as the automotive, metallurgical, mining, chemical or renewable energy, among others. Currently the company has more than 1.200 machines and 1.200 employees and it is considered one of the biggest companies in its sector by sales volume.
GAM has been listed on the stock exchange since 2006 and as of 2019, the Group had consolidated revenues of 143 million euros, with an EBITDA of 43 million, a 25% increase regarding last year.
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.
Source: BME (see the entire post here)