Piaggio & C. S.p.A. has entered into a seven-year financing agreement for Euro 250 million ($294.98 million) with Italian creditors Banca Intesa and Mediobanca. Piaggio's Board of Directors approved the deal December 15.
Tapped to help repay existing borrowings and lines of credit totaling Euro 317 million ($374.1 million), the agreement includes a Euro 150 million ($177 million) term loan and a Euro 100 million ($118 million) revolving credit.
Piaggio's board of directors is scheduled to meet again January 13 to start searching for advisors and global coordinators capable of assisting the company in launching an initial public offering in 2006.
Piaggio, controlled by Italian holding company IMMSI SpA, is expected to offer 40% of its share capital by August, according to sources close to the deal.
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