presented by October Italy
lent to this project, means…
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Created in 1976, Werther International S.p.A. is active in the automotive sector. The company, managed by Luca Gazzotti, has 258 employees and is based in Reggio emilia (Italy).
The company’s main activities are:
The company works with companies based in Europe active as distributors and installers. Export accounts for about 90% of group sales.
The company requests a loan of 1 000 000 € over 36 months with 3 months of deferred repayment* to finance the development of a new production line of lifting platforms for railway an underground market. 500 000 € related to design costs of the technical office, 400 000 € related to materials for the construction of the prototype and 100 000 € for homologations, certification and patents. This project will be realised 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 33 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 490 000 €, which is in line with the regulatory limits.
Like all projects presented to private lenders on October, it is co-financed with institutional investors, sophisticated investors and the management of October, subscribers to the October Fund.
The borrower is the main operating company representing 70% of the group’s turnover and 80% of the profitability. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.
With a turnover of 71 405 000 € in 2017 and an experienced team, the company has a good track record combined with a strong operating margin.
Decline in 2016 turnover is due to change in consolidation perimeter. The forecast is based on the performance of 2017 taking into account 2018 interim financials
The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,12 and a good financial structure, with a forecast net debt / ebitda ratio of 4,35 and a net debt / shareholder equity of 103%.
The real estate debt has been adjusted with the market value of the buildings and bonds expiring after October loan have been considered as quasi-equity.
The analysis of the project leads to a credit rating of B and a 5,50% annual interest rate.
*The multiple of FCCR at 1,12 means that the company has a safety margin of 12% 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.
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