Hogan Lovells advises financial institutions and private investors on €275 million financing to Garofalo

In particular, the transaction consists of:

• a €180 million financing, which includes a €130 million medium/long-term unsecured amortizing credit line and a €50 million unsecured notes sold through a private placement;
• a €70 million unsecured capex line; and 
• an unsecured revolving line of up to €25 million. 

The loan was granted by a pool of banks that included UniCredit, Banco BPM, BNL, Monte dei Paschi di Siena. The notes were underwritten by a group of institutional investors that included Cassa Depositi e Prestiti, F2i, Anima, Mediolanum and Arca. 

The loan is SDG-linked, i.e. it provides for an interest rate adjustment mechanism that may allow the interest rate to be reduced when certain ESG targets are reached, underlining the commitment of GHC, an Italian healthcare company listed on the Euronext STAR segment of Borsa Italiana, to ESG issues.

The Hogan Lovells team that advised on the transaction was led by partner Mauro Saccani together with associates Federico Pappalettera and Giulia Geraci in relation to the financing and by partner Alessandro Accrocca together with associate Edoardo Minnetti and trainee Noemi Biagini in relation to the bond issuance. Serena Pietrosanti, head of Tax Italy, and Maria Cristina Conte, counsel, advised on the tax aspects of the transaction.