Product details

In January 2002, just after the closure of the 2001 financial statements, the top management of Cremonini concentrated its attention on the financial structure of the group in order to value possible changes in the debt instruments currently used. By 2004, a Eurobond equal to USD150 million will have to be refinanced, and an ABS issued in 1997 for a total of USD120 million (which refinanced the first securitisation operation in 1994) will have expired. In particular, this second instrument is known as Guaranteed Asset-Backed Floating Rate Notes and is guaranteed by a portfolio of commercial credits of the Group's operating companies (ratings: S&P AAA, Moody's Aaa). The chief financial officer, who has been on the board of directors since 1998 (the year of the group’s stock market listing), is called to assess all the alternatives capable of optimising three aspects: (1) financial charges; (2) other operating costs; and (3) above all, the risk element of the instruments.