Tool Factory, the parent company of Group Logitravel has registered a new Commercial Paper programme in MARF, BME’s Fixed Income market, of 20 million Euro and maturities up to 24 months. This programme will allow the company to issue short-term debt during the following 12 months and to diversify its funding sources.
Founded in 1997, Tool Factory specialised its activity, as well as its subsidiaries’, in the tourism services distribution sector. It operates as an online travel agency, both for retail and wholesale segments. The Group also provides services for tour operators.
Since 2017, Logitravel has been operating a hotel chain made up of eight establishments. The Group has an international presence in Spain, Italy, Portugal, Russia, UK, Tunisia, Dubai, Mexico and Brazil.
As of September 2019, Logitravel had consolidated sales of €594.2 million and an EBITDA of 14.2 million.
Commercial Paper is 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)