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C.R. Spa

presented by October Italy

€500,000

5.5%

36 months

B

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location

Location

Arzignano, Italy

activity

Activity

Industry

Presentation of the company

Created in 2002, C.R. is active in the Metal sector. The company, managed by Armando Concato, has 92 employees and is based in Arzignano.

The company’s main activity is the production of punch stamps for magnetic laminations used for rotor machines

The company works with customers mainly active in the pumps and electric engines production.

Project Description

The company requests a loan of 500.000 € over 36 months to finance the renovation of production plants. This project will be realised in the next few months.

This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 245 000€, which is in line with the regulatory limits.

Like all projects presented to private lenders on Lendix, it is co-financed with institutional investors, sophisticated investors and the management of Lendix, subscribers to the Lendix Fund.

Analyst’s Opinion

With a turnover of 38 007 000 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.

Increase in turnover mainly comes from an increase of cost of raw materials transferred on customers. The forecast is based on 2017 performance taking into account the performance of 2018.

The borrower has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,2 and a good financial structure, with a forecast net debt / ebitda ratio of 1,87 and a net debt / shareholder equity of 83%.

The real estate debt has been adjusted with the market value of the buildings.

The analysis of the project leads to a credit rating of B and a 5,5% annual interest rate.

*The multiple of FCCR at 1,2 means that the company has a safety margin of 20 % relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (ModeFinance, Crif, Cerved). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points

  • Good historical performance based on diversified client base.
  • Good repayment ability with a forecasted FCCR of 1,2.
  • Good cash flow generation

Points of caution

  • Market influenced by cost of raw materials