La Sirena has established its first Commercial Paper as well as bond programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 100 million euros, in each case. The Commercial Paper programme will enable the company to issue debt over the next 12 months with maturities up to 24 months, while the bond issue will allow the company to issue mid- and long-term debt. The aim of the company is to gain access to qualified investors to diversify its financial resources and cover all financial alternatives.
La Sirena is a company specialized in the sector of food distribution of frozen food and counts with over 800 products, such as fish, seafood, vegetables, meat, ready meals, and desserts.
The company was founded in 1983 and has nowadays an extensive network of 250 stores across Cataluña, Madrid, Castilla-León, Andorra, Levante, and Aragón. The main principle of La Sirena is understanding the preferences of its consumers and introducing new products which adapt to its clients demand and the food market trends.
The activity of the company is mainly operated through its own stores and franchises, and has broaden its multichannel strategy through established retailers, such as Amazon, Caprabo or Carrefour, and high growth aggregators like Glovo. Moreover, La Sirena operates its online channel through its website. Furthermore, La Sirena has, since 2013, a loyalty club “La Sirena Club” which drives important revenues and has around 1,7 million members. This programme offers its consumers exclusive offers and discounts with the aim of maximizing Customer Lifetime Value as well as understanding the customer behavior and implementing a strategy of communication and segmentation.
PKF Attest, Banca March and Beka Finance have acted as Dealers in the Commercial Paper Programme and PKF Attest as Registered Advisor.
In the bond programme, PKF Attest has acted as Dealer as well as a Registered Advisor. J&A Garrigues has been the Legal Advisor in both programmes.
The company was granted a long-term rating of BB- with a stable outlook by Axesor Rating.
As of last year-end, in April 2021, La Sirena had consolidated revenues of 194.4 million Euros and an EBITDA of 15.6 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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