Alantra advised Portuguese Group Sugal on the placing of a €80mn bond programme on Spanish MARF

Oct 2016

Capital raise

Value €80 million

The transaction
Alantra as Coordinator and Sole Bookrunner, advised, structured, priced and allocated a €80m Bond Programme by means of two tranches:

A €42mn first tranche with a 4.25% coupon, due in October 2020
A €23mn second tranche with a 3.00% coupon, due in October 2019
The Bond Programme was the first one ever listed in Spanish MARF (Alternative Fixed Income Market, by its acronym in Spanish).

Key takeaways
High Demand: Deal was 3x oversubscribed with TIER 1 investors participating in the issuance
Low range Pricing: Price talks started at 3.5% and pricing confirmed at the tightest end of the range (3.00%)
Bond Programme: allowing the company to tap the market with two tranches over a 1 year period of time
Investor Diversification: second bond issue attracted new investors and allowed current to increase exposure through the new bond
Flexibility: The bond programme allows the company to issue in a 3 to 8 year tranches, achieving a flexible debt maturity profile
Control over the process: Private Placement format gives the company control over the entire process, from investor selection to price talks
The Company
Sugal Group is one of the largest tomato paste producers worldwide (#2 worldwide Player). Vertically integrated business, from the farming of the tomato to the end consumer, the company produces tomato paste and tomato based products.

The group operates 5 production facilities, 3 on the Iberian peninsula (Spain and Portugal) and 2 in Chile, with sales of €265mn and €48mn of EBITDA in FY15, exporting 95% of its production to more than 50 countries.