illycaffè S.p.A. issued today senior unsecured notes

Trieste, 03 August 2015 – illycaffè S.p.A. issued today senior unsecured notes for an overall nominal amount of € 70 million. The loan is not rated and is fully underwritten by Pricoa Capital Group in its capacity as Sole Underwriter. As per the agreement, a shelf facility could be used by the Company to extend the notes issue up to USD 140 million.

The notes will have a 12-year maturity, a 10-year average life and an annual fixed coupon of 3.35%.

The transaction ensures greater financial flexibility and effective differentiation of financing sources to support the Company's growth plans.

Placement is solely for qualified institutional investors.

“This bond issue is an important sign of confidence in financial markets. It also proves our project's reliability – states Andrea Illy, Chairman & CEO of illycaffè– at a time when illycaffè is rolling out a global development plan”.

A recent strategic audit, performed by Roland Berger & Partner, confirmed the sustainability of illycaffè strategy, aiming to double the company’s revenues in the long term. The growth plan, supported by a balanced mix of equity and innovative financial resources, is based on two main pillars:

  • To increase the market share in the premium hospitality industry at global level, through product and service excellence.
  • To extend the brand to other consumption occasions – particularly at home - with preparation systems through selective distribution channels and the illy mono brand stores.

“The critical success factor in the premium restaurant, hotel & café channel – Andrea Illy says - relies on a combination of innovation, quality and service – where illy's leadership role grew stronger over its 82-year history. Thanks to this recognised excellence, we are now appealing to the most sophisticated coffee lover and connoisseur also at home”.

illycaffè was founded in Trieste in 1933; the company manufactures and markets a unique blend of 100% Arabica espresso coffee and is the leading brand in top quality coffee. Illycaffè is an official partner of Expo 2015, creating and managing the content, exhibits and events centred on coffee in the common area of the Expo Coffee Cluster. Almost 7 million cups of illy coffee are consumed daily throughout the world. illy coffee is sold in more than 140 countries and is served in over 100,000 of the world’s finest restaurants and cafés. The monobrand illy shops are about 230 in 43 Countries. The company also set up and runs the Coffee University with a view to fostering and spreading the culture of coffee; this centre of excellence provides comprehensive academic and hands-on training for coffee growers, baristas and fans covering every aspect of the product. The company has approximately 1,084 people on its global payroll, and in 2014 posted consolidated revenues of €391 million. illy purchases green coffee beans directly from growers of the highest quality Arabica, based on partnerships underpinned by the principles of sustainable development. Out of its Trieste headquarters the company encourages long-term partnerships with the world’s best growers in Brazil, Central America, India and Africa, sharing know-how and technology and paying higher than market compensation.