Thu 08/06/2020 11:49 AM
Relevant Documents:
Financial Report
Presentation


Almaviva is considering an October refinancing of its €250 million senior secured 7.25% high-yield bond due in October 2022, management at the Italian IT and outsourcing services provider said during its earnings call today. CFO Christian De Felice said the company’s liquidity is strong with a cash balance of €91.8 million and added that a refinancing will depend on wider market stability in regards to Covid-19. Continue reading for the EMEA Core Credit by Reorg team's analysis of the Almaviva high-yield bond, and request access now to follow similar situations.

Management faced questions about the sustainability of the group’s working capital increase in the coming months. De Felice said that the company has forecast a revenue increase in the second half of the year and this would offset working capital increases.

When asked about the company’s decrease in revenue in the CRM Europe division, De Felice said management had suspended several low-yield contracts to focus on profitable contracts in this division.

The CFO said he expects Almaviva to generate strong second-half revenue in the IT service division due to high client demand. The company’s revenue breakdown by division is below:

Almaviva’s capital structure is below:




































































































































Almaviva S.p.A.


06/30/2020

EBITDA Multiple

(EUR in Millions)

Amount

Maturity

Rate

Book


€40M Super Senior Secured Revolving Credit Facility due 2022

15.0

Feb-2022

E + 4.500%

Total Super Senior Secured Debt

15.0

0.1x

€250M Senior Secured Notes due 2022

250.0

Oct-2022

7.250%

Total Senior Secured Debt

250.0

2.5x

Other Financial Liabilities 1

74.0



Total Other

74.0

3.1x

Total Debt

339.0

3.1x

Less: Cash and Equivalents

(91.8)

Net Debt

247.2

2.3x

Operating Metrics

LTM Reported EBITDA

107.9


Liquidity

RCF Commitments

40.0

Less: Drawn

(15.0)

Plus: Cash and Equivalents

91.8

Total Liquidity

116.8

Credit Metrics

Gross Leverage

3.1x

Net Leverage

2.3x

Notes:
Almaviva has both recourse and non-recourse factoring arrangements outstanding.
1. Other financial liabilities include SIMEST participation, Government subsidized financings, accrued interests, and leasing.


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