The Board of directors of Piaggio & Co. SpA approved the issuance of bonds worth Euro 150 million in part to finance the reimbursement of an Aprilia bond due May 2.
Piaggio wants Euro 100 million to reimburse the Aprilia loan, and reportedly plans to use the remaining funds to cover the costs of the operation and finance other Piaggio Group activities.
Piaggio says the finance deal would run seven to 10 years and will be guaranteed by Piaggio and Aprilia jointly. The company is meeting with investors.
Caboto, Deutsche Bank and Lehman Brothers are managing the sale.
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