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Covenants

Certain agreements regarding Group borrowings contain special clauses which, in the event of failure to comply with certain economic and financial covenants, envisage the lending banks’ option to claim repayment if the company involved does not immediately remedy the infringement of such covenants as required under the terms and conditions of the agreements. At 31 December 2015 all the contractual clauses relating to medium and long term financial liabilities were fully complied with by the group. Below is a description of the main covenants relating to the borrowings of the operating sub-holding companies outstanding at year end.

Espresso Group

  • the Convertible Bond 2014/2019 and related interest payments are not backed by specific guarantees nor are there any covenants or clauses that could trigger early repayment.

Sogefi group

Sogefi S.p.A., the parent company of the group’s sub-holding operating in the automotive sector, has undertaken to comply with a series of “covenants” as summarised below:
  • loan of € 60 million: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equal to 3.5;
  • loan of € 15 million: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equa to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • loan of € 20 million: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;  
  • loan of € 50 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • loan of €30 milion: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • loan of € 55 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4; 
  • loan of € 20 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • loan of € 30 million: ratio of consolidated net financial position to consolidated normalised EBITDA of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • bond of USD 115 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;
  • bond of  25 million: ratio of consolidated net financial position to consolidated normalised EBITDA of of less than or equal to 3.5; ratio of consolidated normalised EBITDA to consolidated net financial expenses of not less than 4;  

KOS group

The KOS Group has undertaken to comply with a series of covenants in relation to a number of loans, details of which are as follows:
  • a line of credit obtained by the parent company KOS: ratio of consolidated net financial position to consolidated EBITDA of less than 4.25 ;
  • loan obtained by Istituto di Riabilitazione Santo Stefano S.r.l.: ratio of net financial position to EBITDA lower than 4.25; 
  • loan obtained by Residenze Anni Azzurri S.r.l.: ratio of net financial position to EBITDA lower than 4.25;
  • loan obtained by Medipass S.p.A.: ratio of net financial position to EBITDA lower than 2.6 and ratio of consolidated net financial position to consolidated equity of less than 2.2 and a Debt Service Coverage Ratio of more than 1.