Clearwater International advises Licata on its debt rescheduling
Clearwater International has advised Licata on the bilateral debt rescheduling agreements signed with nine banks backed by Garanzia MCC e SACE provided within Cura Italia and subsequent Liquidità Legislative Decrees.
Intesa Sanpaolo, Unicredit, Creval, BPER, Banca Popolare Sant’Angelo, BNL, Credem, BCC Barlassina and Banca San Francesco were the banks individually involved in the rescheduling of the existing debt exposure, the transformation of short-term credit lines into medium long-term and the temporary credit lines’ regeneration supporting the working capital.
Founded in the early 1980s, Licata is a leading company in Italy specialising in the production and distribution of high-quality products for the building, infrastructure and construction sectors for both residential and industrial businesses. Currently, Licata serves both the Italian and European markets thanks to its three production plants located in Sicily, Lombardy and Veneto and its two subsidiaries, Licata BG and Licata FR, sited in Bulgaria and France respectively.
In 2019, the shareholders decided to establish a new guideline and team in order to enable Licata to seize the opportunities of the market and to optimise the working capital management. The consolidation, as well as the new policies allowed the business, as early as 2020, to achieve and exceed the business plan objectives despite the industrial downturn generated by the COVID emergency.
The debt rescheduling optimises Licata’s financial structure, currently composed of 70% medium and long-term debt and 30% short-term debt, which will support the development plan that has already been exceeded as a consequence of the excellent turnover achieved in the first few months of 2021 and is forecasted to grow in 2022 by more than 50% compared to 2019. As of April 2021, Licata achieved an increase in revenue of 35% compared to the same period in the previous year.