Ultracongelados Virto has incorporated its first 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.
This program will allow the company to diversify its sources of financing and issue short-term debt over the next 12 months.
The Company, a family business founded in 1984, focus its activities within the production and distribution of deep-frozen vegetables sector for retail, foodservice and industry. Currently, the Group is a market leader and an international reference, with an international presence in Spain, France, Germany, United Kingdom, Holland, Poland, Portugal, USA, Brazil and Chile.
As of 2019 the Group had consolidated revenues of 357.2 million euros and an EBITDA of 21.2 million.
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)