Campari will use the money to fund its purchase of Lascelles deMercado

Campari will use the money to fund its purchase of Lascelles deMercado

Gruppo Campari is set to raise EUR400m (US$524.3m) from the issue of bonds that will trade on Luxembourg’s stock exchange.

The placing, announced late today (18 October), matures in October 2019 and pays a fixed annual coupon of 4.5%, Campari said. The funds replace a bridge loan secured for the firm’s purchase of a majority stake in Lascelles deMercado, the owner of the Appleton Estate and Wray & Nephew rum brands, which was announced last month.

“The order book was closed after raising a total demand of EUR4.8bn, corresponding to an over-subscription of 12 times the issue size,” Campari said. “As a result of the strong interest from investors, the initial offer of EUR350m was increased to EUR400m.”

Settlement of the notes is expected next week.