Astaldi receives revised non-binding offer with non-binding LOIs

All,

We think this will work. It must have been pre-discussed with the courts as per our last mail.

Salini made a non-binding offer for the majority of Astaldi. It is billed as an “update” to the one made in February.The conditions centre on the implementation of Project Italy and specifically on receiving - by August 1st - binding commitments from the CDP and the banks Intesa, Unicredit, BNP, Sace, BMPS, BPM and Illimity. All have written non-binding LOIs to Salini regarding their intended participation in an E600m funding round and an overall E1.8bn financing plan.
The E600m of fresh equity would be split (largely as per recent rumours):- E50m Salini Costruttori- E250m CDP- E150m above mentioned banks- E150m underwritten by Merrill Lynch and Citi.
Moreover the project would be supported by E984m of credit lines (curiously this does not add up to E1.8bn). Including bridge financings for:- E200m New credit line for Salini + extension of certain existing credit lines- E584m Astaldi
Further new elements include: - anti dilutive warrants for Salini- warrants in favour of the banks for Astaldi bridge financing- the inclusion of “facility management” wrt. some smaller concessions (not necessarily a change from Feb. as even then not all concessions were proposed to be carved out.
Confirmations for Astaildi:- E225m capital injection by the augmented Salini- Carve-out of Concession assets for creditors - Shares in Astaldi - but the number remains unclear
Meanwhile it emerged that last week Unicredit have filed a criminal complaint against Astaldi for embezzlement regarding a factoring facility. Not great news, but nothing in the scheme of things.
Technically, yesterday was the deadline for a binding offer, but as we’ve stated before, we believe that where there is a will, there is a way. We are certain the courts will grant the extension.

Wolfgang