EM-focused Carraro plans to issue up to €120 million senior notes

By Marisa Wong

Los Angeles, Oct. 16 – Carraro Finance SA plans to issue up to €120 million of senior unrated and non-convertible notes to be guaranteed by Carraro SpA, according to a press release.

The notes will be issued for a total nominal amount ranging from a minimum of €100 million to a maximum of €120 million at an issue price of par.

The notes will have a maturity date of Nov. 6, 2028.

The notes will be callable at 103 starting May 6, 2025, at 101.5 starting May 6, 2026 and at par starting May 6, 2027. The notes are subject to mandatory early redemption if a change of control occurs.

The notes will bear interest at a fixed rate of 7¾%.

The notes are expected to be offered to the general public in Luxembourg and Italy and to be distributed with qualified investors in the European Economic Area and the United Kingdom and institutional investors under Regulation S.

Subject to required approvals and authorizations, the offering is set to begin on Oct. 25 and end on Oct. 31. Issuance will take place on Nov. 6.

Proceeds from the issuance, along with cash reserves, will be used to early redeem by Dec. 31 the €180 million of senior unrated and non-convertible notes due January 2025.

Carraro makes power transmission systems primarily for agricultural machinery. The Campodarsego, Padua, Italy-based company has production plants in India, Argentina, China, South Africa and Brazil.

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