Leonardo announced that “on 29 December next it will arrange for the full early repayment of the Term Loan of € 500 million, maturing in November 2023, signed in 2018. The early repayment decision is aimed at optimizing the use of expected cash resources during 2022 also allowing – reads Leonardo’s note – in consideration of the increase in interest rates, a reduction in the variable rate component of the sources of financing available to the Group”.
“Leonardo also announces the overall results of the make-whole repayment operation of the entire nominal amount of its ‘7.375% Notes due 2039’ (the ‘2039 Bonds’) and ‘6.25% Notes due 2040’ (the ‘2039 Bonds’ the ‘2040 Bonds’), for an outstanding principal amount of $123,626,000 and $181,457,000, respectively, as set forth in the related documentation”.
Alessandro Profumo, CEO of Leonardo, commented:
“The finalized transactions confirm the path of reduction of the Group’s gross debt by exploiting the current market opportunities. The early repayment of the Term Loan signed in 2018 will make it possible to obtain a reduction in gross debt of 500 million euros and to contain the cost of interest in 2023 while, through the full redemption of our bonds issued in the United States, we will repay the financial instruments most expensive in our balance sheet”.
The Bonds will be redeemed on 15 December 2022 as follows:
Bonds maturing in 2039 at a redemption price of $1,387.69 per $1,000 in par value which includes accrued interest of $30.73 for a total outlay of $171,555,033.01 including accrued interest of $3,798. 923.96;
Bonds due 2040 at a price of $1,276.33 per $1,000 in face value including $26.04 of accrued interest for a total outlay of $231,599,231.35 including $4,725,442.71 of accrued interest.
“The total cost of the Make-Whole operation, launched last November 3 by Leonardo US Holding LLC, was defined on December 12 with settlement scheduled for December 15 where it amounts, net of accrued interest, to $374,020,319.60 million. This value benefits from the hedging put in place by Leonardo US Holding LLC on the launch date of the Make-Whole in consideration of the high volatility of US Treasuries, used to define the repayment value of the Bonds”.