Goldman to the rescue

7 January 2003

The deal was only saved at the last minute after Goldman put up E2.8bn of the E10.3bn loan. It has extracted its price. The facility is shorter than the Benettons wanted. Mediobanca, the Benettons main adviser, is left with egg on its face.

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The Benetton family of Italy has raised E10.3bn of financing for the acquisition of Autostrade S.p.A., the largest acquisition in Italy in 2002.

The offer, which is for 70% of the share capital of the Italian motorway company is to be launched by Newco 28 S.p.A., a special purpose vehicle formed by the Benettons' Schemaventotto S.p.A. for the acquisition.

It is financed by a EUR8.78 billion acquisition facility together with a

EUR1.5 billion capital expenditure facility to be offered to Autostrade

S.p.A. for capital expenditure following completion of the acquisition.

The lead arrangers were Mediobanca, UniCredit Banca Mobiliare S.p.A, Goldman Sachs, Barclays Capital, Credit Lyonnais and "La Caixa". Goldman Sachs is lending E2.8bn, Barclays Capital E1.5bn.

The E10.28bn facility has a longterm nominal maturity of twelve years, according to people close to the situation. However, these people say, the loan is structures in such a way that the Benettons are incentivised to refinance about half of it in the corporate bond market after the acquisition.

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