Ferretti Group debt restructuring is finally complete...

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Ferretti Group debt restructuring is finally complete...

Industry News

Plus new CEO and board of directors appointed.

JULY 2009

The Ferretti Group, one of the top three biggest yachtbuilding operations in the world, has announced its debt restructuring is now complete and named its new board of directors, including a new group CEO.
The debt restructuring has reduced the operation’s long-term debt from €1.1 billion to around €550 million against ‘conversion of credits into ‘exit participation’ rights, a capital increase of €85m, of which €70 million was underwritten by chairman Norverto Ferretti and other members of the group’s management, further medium-term credit facilities totalling €65m, and the extension of €24m of existing short-term credit facilities to the medium-term, granted by three major financial institutions.
Norberto Ferretti, the group's management and Mediobanca finalised the acquisition of Ferretti SpA and implemented the capital increase through NewCo Ferretti Holding SpA, for which Mediobanca also acted as a financial advisor.
As for equity stakes, Norberto Ferretti and the group's management hold 38.2 per cent between them, Mediobanca has 8.8 per cent. And senior and mezzanine lenders hold a total of 53 per cent in ‘exit participation’ rights. Consequently Norberto Ferretti, the group's management and Mediobanca hold 100 per cent of the group's voting rights.
Ferretti Group's board of directors is now composed of the following members ‒ chairman Norberto Ferretti, new CEO Salvatore Basile (photo), who comes to the group from outside the marine industry, vice-chairman Alessandro Foti, Giancarlo Galeone, Lamberto Tacoli, Augusto Fantozzi and Mario Giuseppe Rossetti.
In January this year the Ferretti Group defaulted on its debt repayment after refinancing efforts failed. The group was then under the ultimate control of private-equity house Candover, which had acquired the Ferretti Group in late ‘06 in a deal that valued the company at around €1.7 billion. It was the debt burden of that deal that brought the Ferretti group close to financial collapse. Candover has since had to walk away from the Ferretti Group completely, which means it made a very expensive mistake.
The Ferretti Group – officially Ferretti SpA – has nine key yacht brands under its umbrella at the present time ‒ Ferretti Yachts, Pershing, Riva, CRN, Custom Line, Mochi Craft, Itama and Apreamare. It has over 3,000 employees across 25 production sites across Italy and Florida, USA.
Norberto Ferretti and his late brother founded Ferretti SpA in ‘68.

For more, www.ferrettigroup.com.

© Phil Draper