Lenders impressed by company's "strengthened financial structure and consistent debt repayments".
Italy's Buongiorno has signed a new loan facility with a pool of banks headed by Banca IMI SpA for the issue of a new multi-year loan for a total consideration of €87 million.
The company, which offers mobile content, social networking and marketing services, first announced the agreement in its 1Q09 earnings release.
The loan facility is divided into a five-year, €67 million senior loan with payments due every six months (Tranche A) and a €20 million revolving credit facility, which will be gradually cancelled starting the fourth year after the issuance date (Tranche B).
The company hasn't said what the loan will be used for, but says it has been agreed following the successful integration of iTouch last year and subsequent restructuring that has seen its debt reduced by €40 million to its current €100 million.
Buongirono had originally secured a bridge loan facility of €115 million following its iTouch acquisition.
Carlo Frigato, CFO of Buongiorno, said: “We are highly satisfied with the closing of this loan agreement, which represents one of only a few transactions of its kind in Italy during 2009 so far. It demonstrates that although the credit market remains in critical condition, financing is still available to reputable companies with business models that show good visibility for the next few years."
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