MARANELLO - Ferrari N.V. (NYSE/EXM: NYSE:RACE) has priced a Euro 500 million bond issue, set to mature in May 2030, with an issue price of 99.677% of their principal amount. The notes carry a fixed annual coupon of 3.625%. The luxury sports car manufacturer stated that the offering was more than twice oversubscribed, indicating strong investor interest.
The proceeds from the bond issue are earmarked for general corporate purposes. A consortium of banks, including Banco Santander (BME:SAN) S.A., BNP Paribas (OTC:BNPQY), Citigroup Global Markets Europe AG, Crédit Agricole Corporate & Investment Bank, J.P. Morgan SE, Mediobanca (OTC:MDIBY) - Banca di Credito Finanziario S.p.A., and UniCredit Bank GmbH, managed the issuance process as Joint Lead Managers.
Ferrari has applied for the notes to be listed on the Official List of Euronext Dublin and to be traded on the regulated market of Euronext Dublin. The settlement and issue of the notes are expected to take place on May 21, 2024.
Ferrari is recognized globally as a premier luxury brand, known for its exclusive sports cars that embody Italian design and state-of-the-art performance. The brand's heritage is closely linked to its Formula 1 racing team, Scuderia Ferrari, which holds the record for the most wins in Formula 1 history.
The press release also included a disclaimer, noting that the notes have not been registered under the United States Securities Act of 1933 and will not be offered or sold in the United States absent registration or an exemption from registration requirements. The communication is targeted at relevant persons as defined under the Financial Services and Markets Act 2000.
This information is based on a press release statement from Ferrari N.V. and does not constitute financial advice or a recommendation to engage in any investment activity. Potential investors are advised to consult the final form prospectus, which will be available in accordance with the Prospectus Regulation, for complete details before making any investment decisions.
InvestingPro Insights
Ferrari N.V. (NYSE/EXM: RACE) has demonstrated a robust financial performance, with a market capitalization of $73.92 billion, reflecting the company's strong brand value and investor confidence. The luxury car manufacturer has a Price/Earnings (P/E) ratio of 52.49, which is high, indicating that investors are willing to pay a premium for the company's earnings. This high valuation is supported by the company's revenue growth over the last twelve months as of Q1 2024, which stands at 14.75%, showcasing Ferrari's ability to expand its sales in a competitive market.
Despite a strong revenue growth, an InvestingPro Tip suggests that three analysts have revised their earnings downwards for the upcoming period, which could be a point of concern for investors looking for continued growth. Additionally, Ferrari has been trading at a high Price/Book multiple of 20.88, suggesting that the market values the company's assets quite richly compared to its book value.
On the positive side, another InvestingPro Tip points out that Ferrari has raised its dividend for 3 consecutive years and has maintained dividend payments for 9 consecutive years, highlighting a commitment to returning value to shareholders. This is particularly noteworthy given the company's dividend yield as of the 135th day of 2024 stands at 0.65%, with a significant dividend growth of 34.37% over the last twelve months as of Q1 2024.
For those interested in gaining deeper insights into Ferrari's financial health and future prospects, InvestingPro offers additional tips. There are 15 more InvestingPro Tips available for Ferrari, which provide detailed analysis and forecasts that could be invaluable for making informed investment decisions. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
Investors looking to further evaluate Ferrari's investment potential should note that the next earnings date is scheduled for August 1, 2024. With the company's strong track record and the insights provided by InvestingPro, investors can make more informed decisions regarding their interest in Ferrari's bond issue and equity.
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