(Finance) – Digital360An innovative SME listed on the Euronext Growth Milan market, has signed three loan agreements with illimity Banka banking group founded by Corrado Passera and listed on Euronext STAR Milan, to have 14 million euros to be used in an acquisition program, in Italy and abroad. In addition to the use of third party financial means, this M&A program provides for the use of the group’s own resources already available from the end of the previous year.
The contracts provide for the availability of three lines of financing that can be used with specific drawdowns over the next 12 months, depending on the financial needs that will arise in conjunction with the planned acquisitions. Financing has a duration of 6 years, including 24 months of pre-amortization, and includes standard clauses for this type of contract; it will be disbursed at a variable rate, and the company stands evaluating the possibility of hedging to minimize the risk of rate hikes of interest. Any part of the loan not used within the 12-month term will be returned to the bank’s availability.
“We are very satisfied with this operation – commented the CFO Emilio Adinolfi – which allows us on the one hand to face with serenity the path of growth by external lines undertaken this year alongside an institution whose flexibility, timeliness and proactivity has been greatly appreciated, and on the other to optimize the capital structure of the group which at the beginning of the year had no net debt, with a credit NFP of over 3 million euros.
“Recourse to debt leverage therefore appears, even in this more difficult market context, to be a very important tool for rebalancing the sources of corporate financing and prepare ourselves for the interesting and stimulating challenges that will arise from growth by Digital360, “he added.