La Leonessa S.p.A.

Presentation of the company

Created in 2001, La Leonessa S.p.A. is active in the metal sector. The company, managed by Gabriella Pasotti, has 218 employees and is based in Carpenedolo (Italy).

The company’s main activities are:

• Production of ball and roller bearings;
• Production of axles and suspensions.

The company works with customers active in wide spread industries like automotive, agriculture, construction, machines and energy industry.

Project Description

The company requests a loan of 700 000 € over 48 months with 3 months of deferred repayment to finance the renovation of production equipment. This project will be realized by the end of the year.

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 a medium-term loan with a capital amortization deferment and as such presents a different method of capital repayment than standard projects. The first 3 months, the lenders will only receive interest; the following 45 months, the lenders will receive interest and principal amortization. This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.

This project is not covered by the Italian state guarantee.

The amount offered on the platform is limited to 343 000 €, which is in line with the regulatory limits.

Analyst’s Opinion

The borrower is the main operating company representing 57% of the group’s turnover and 63% of the profitability. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.

With a turnover of 55 865 746 € in 2017 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The activity has been influenced by the introduction of new products. The forecast is based on the performance on 2017 taking into account 2018 interim financials

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,07 and a strong financial structure, with a forecast net debt / ebitda ratio of 1,83 and a net debt / shareholder equity of 174%.

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 6,25% annual interest rate.

*The multiple of FCCR at 1,07 means that the company has a safety margin of 7% 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;
• Correct repayment ability with a forecasted FCCR of 1.07;
• Long experience in the trade industry.

Points of Caution:

• Competition in international markets against bigger players.