Intesa Sanpaolo, Unicredit, Bpm and more. Here’s how the banks will help Saipem
What does Saipem's financial maneuver envisage and what will be the role of banks such as Intesa Sanpaolo, Unicredit, Banco Bpm and more. The article by Emanuela Rossi
Banks – and not just Eni and CDP – to Saipem's aid.
Here are all the details.
The numbers presented by Saipem on Friday 25 March are certainly not rosy . Present in over 70 countries around the world and with around 32 thousand employees, the group led by Francesco Caio in 2021 recorded a net loss of 2.46 billion euros, more than doubled compared to 1.13 billion in 2020, equal to over 1 / 3 of the share capital. In addition, revenues decreased by 6.4% to € 6.87 billion and both the gross operating margin (-1.19 billion) and the operating result (-1.71 billion) were in the red.
In addition to last year's results, the board approved the revision of the Strategic Plan to 2025, with an annual rate of growth in revenues of around 15% in the construction (E&C) and drilling (offshore) sector based on the data for 2021. "over 1.5 billion euros" expected from possible sales. Now appointment on May 17 for the shareholders' meeting which will have to approve the capital increase for 2 billion to be carried out by March 31, 2023.
THE FINANCIAL MANEUVER APPROVED BY THE SAIPEM BOARD
The board of directors has in fact launched a maneuver to strengthen the financial and equity structure which has various objectives: to restore levels of equity consistent with the size of the company; reduce the level of debt of the company; re-establish adequate cash levels during the Plan time period; stabilize Saipem's credit rating with a view to guaranteeing access to debt capital markets to refinance existing bonds.
And here is how the financial maneuver is structured: capital increase of 2 billion euros; new RCF line of up to 1 billion euro, which will be organized before the start of the capital increase and in which seven banks have confirmed their participation, which have preliminarily approved participation in the maneuver for approximately 450 million euro; signature lines on a bilateral basis by the credit institutions participating in the maneuver for a total amount of approximately € 1.35 billion.
Pending the completion of the capital increase, an immediate liquidity intervention is envisaged, equal to 1.5 billion euros, divided into two tranches: 645 million euros, by 31 March next, by way of "Payment in Future Capital Increase Account ”by the shareholders who exercise joint control over Saipem, ie Eni and Cdp; the residual amount, according to timing substantially similar to the previous intervention, through the financial support of important Italian and international banks.
THE BANKS INVOLVED AND THE ROLE PLAYED IN SAIPEM
To clarify, the same group specifies that on 24 March a mandate letter was signed with Banco Bpm, Bnp Paribas, Citibank, NA, London Branch, Deutsche Bank, Hsbc Continental Europe, Milan Branch, Illimity Bank, Intesa Sanpaolo and UniCredit. The document provides for a liquidity line in favor of Saipem for 855 million euros, backed 100% by a specific parent company guarantee issued by the shareholder Eni. The liquidity line, with the relative guarantee, will remain in place until the disbursement of another loan in favor of Saipem, again equal to 855 million, backed by 'Guarantee Italy' and issued by Sace and by Eni's parent company guarantee for an amount equal to 18%. Space then, as mentioned, to the new RCF line up to 1 billion euro, which will be organized by the start of the capital increase and with respect to which seven banks that are part of the financial maneuver have confirmed that they have preliminarily approved the equity investment for approximately 450 million euros.
Saipem then points out that – for the capital increase – Bnp Paribas, Citigroup Global Markets Limited, Deutsche Bank, Hsbc, Intesa Sanpaolo Imi Corporate & Investment Banking, UniCredit Bank AG, Milan Branch will act as Joint Global Coordinator and Joint Bookrunner on the on the basis of a pre-underwriting agreement which has as its object the commitment to stipulate with the group, close to the start of the option offer, a guarantee agreement for the subscription of any ordinary shares that may remain unsubscribed following the outcome of the '' offer on the Stock Exchange of unexercised rights for approximately 1,138 million euros. Saipem has also identified Banca Akros to act as joint bookrunner.
EXPOSURE TO BANKS AT 31 DECEMBER 2021
As regards the relationship with credit institutions, according to what emerges from Saipem's annual financial report at 31 December 2020, the net financial debt before IFRS 16 lease liability amounted to 872 million euros, up 400 million compared to at 31 December 2019 "mainly due – it says – to the entry into full operation of projects acquired in 2019, to the slowdown of projects due to the effects of the pandemic and to the postponement of some activities agreed with customers". Net financial debt including IFRS 16 lease liability (354 million euros) amounted to 1,226 million euros.
In particular, long-term payables to banks amounted to 584 million, long-term debts to other lenders amounting to 1,993 million which brought long-term net financial debt to 2,511 million.
From the same document we learn that short-term payables to banks amounted to 387 million while bonds and other lenders due in the short term amounted to 71 million. In addition, it is necessary to record net liabilities for current leases (135 million) and net liabilities for non-current leases (219 million).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/intesa-sanpaolo-unicredit-bpm-e-non-solo-ecco-come-le-banche-soccorreranno-saipem/ on Sun, 27 Mar 2022 10:14:27 +0000.