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Italian drinks giant, Campari Group, embarks on an audacious €1.2 billion fundraising journey, employing a financial acrobatics spectacle to acquire the revered French cognac house, Courvoisier SAS.

Campari Raises €1.2B To Fund Courvoisier Takeover : Unveiling the Financial Spectacle

In a daring move to secure its $1.32 billion deal for Courvoisier, Campari Group dazzled the financial world by raising €1.2 billion ($1.3 billion). The Italian beverage powerhouse orchestrated this feat through a mesmerizing blend of new share offerings and convertible bonds, captivating investors with a financial tapestry unlike anything seen before.

The Accelerated Bookbuilding Act

Campari-Milano NV, flamboyantly trading as Campari Group, unleashed a €650 million spectacle through an accelerated bookbuilding process. In this financial theater, underwriters orchestrated a symphony of investor bids within a tight timeframe. The new shares, akin to rare gems, were priced at €9.33 each, a symbolic entrance ticket representing 5.6% of the company's existing share capital.

Campari Raises €1.2B To Fund Courvoisier Takeover : The Bond Ballet

Campari did not stop at shares; it executed a mesmerizing bond ballet, raising an additional €550 million through senior unsecured convertible bonds. These financial pirouettes, set to mature in January 2029, can gracefully transform into company shares. The bonds tantalize investors with a rhythmic interest payout of nearly 2.4% every six months. However, in this financial masquerade, buyers must patiently await at least 90 days before they can unmask and sell their convertible bonds.

Masterminds Behind the Curtain

Behind the scenes, Italian law firm PedersoliGattai, Houthoff of the Netherlands, and Cravath Swaine & Moore LLP orchestrated Campari's grand performance. BofA Securities Europe SA, Goldman Sachs Bank Europe SE, Crédit Agricole Corporate, Intesa Sanpaolo SpA, and Mediobanca took center stage as joint global coordinators and joint bookrunners, guided by legal virtuoso Linklaters LLP.

Campari Raises €1.2B To Fund Courvoisier Takeover : The Market's Standing Ovation

As the curtains briefly dropped, shares in Campari, trading on the Euronext Milan exchange, waltzed at €9.35 during Wednesday's lunchtime performance, inducing a gasp with a 5.82% descent from Tuesday's closing act at €9.926.

The Purposeful Symphony

Campari, renowned for its Aperol and Wild Turkey whiskey, declared that the financial masterpiece's proceeds would fuel the acquisition of Courvoisier while bolstering its financial fortifications. This strategic orchestration, guided by legal luminaries Allen & Overy LLP and McDermott Will & Emery LLP, was initially disclosed in December, with Campari committing to pay up to an additional $120 million in 2029, should Courvoisier hit predefined sales crescendos.