Italcer successfully completes debt refinancing
Italcer, a benefit company and one of Italy’s leading players in the ceramic surfaces sector, has successfully refinanced €201 million of Unitranche bonds originally issued in 2018 and maturing in October this year.
A consortium of international banks participated in the operation, including Banco BPM (acting as an agent bank), Banco Bilbao Vizcaya Argentaria, CaixaBank, Crédit Agricole Italia, Cassa Depositi e Prestiti, BPER Corporate Investment Banking, BNL BNP Paribas and Banca Monte dei Paschi di Siena, which subscribed to a senior loan totalling €150 million. Oak Hill Advisors (OHA), a leading global alternative asset manager specialising in the credit sector, subscribed to subordinated bonds.
The previous loan, issued in October 2018 to finance the acquisition of Ceramica Rondine S.p.A., had been underwritten by pan-European private debt funds managed by Pemberton Asset Management along with several specialised Italian operators. Over the following years, additional increases to the same loan helped to partially fund Italcer Group’s external growth strategy.
Italcer Group was set up by the private equity fund Mindful Capital Partners (the major shareholder) and CEO Graziano Verdi with the aim of forming a major ceramic industry player capable of leveraging production, logistics and commercial synergies. The group has successfully completed a total of eight acquisitions since 2017: La Fabbrica, Elios Ceramica, Devon & Devon, Ceramica Rondine, Equipe Ceramicas, Cedir, Ceramica Fondovalle, and most recently, Terratinta Group SB in December of last year.
Since its inception, Italcer Group has experienced steady growth, both organically and through acquisitions, and has gained significant market share. Its success is partly attributable to the launch of innovative solutions such as Advance, a range of antibacterial, anti-CO2 and anti-smog surfaces. The group has increasingly focused on high-value segments such as large and ultra-thin surfaces (large slabs or sintered stones) as well as small and extra-small formats, establishing itself as a unique multi-specialist in the ceramics sector.
Lorenzo Stanca, managing partner of Mindful Capital and chairman of Italcer, expressed his satisfaction with the transaction, stating, “We are very pleased with this operation. The new financing structure allows for a reduction in the overall cost of debt compared to the maturing loan.”
Italcer’s CEO, Graziano Verdi, added: “With the completion of the refinancing, Italcer is entering a new phase of growth and development while maintaining a strong focus on the high-end market.”
Alexis Attelis, co-head of Europe and a partner at OHA, said: “OHA is honoured to partner with a company and management team of such high standing. We are thrilled to support Italcer in this new phase of growth, thanks to our tailor-made credit offering.”
The Italcer group closed 2023 with a pro forma EBITDA of more than €80 million and revenues of €340 million.
Italcer received financial advice on the transaction from PwC’s debt advisory team, led by Alessandro Azzolini. Legal assistance was provided by Legance, with teams headed by Marco Gubitosi and Tommaso Bernasconi. Gitti & Partners handled the tax and structuring aspects, with a team led by Diego De Francesco.
