FERRARI ANNOUNCES SETTLEMENT OF ITS NOTES OFFERING  

Rhea-AI Summary

On 21 May 2024, Ferrari announced the settlement of its Euro 500 million notes offering. The notes, due on 21 May 2030, have an annual interest rate of 3.625% and were issued at 99.677% of their principal amount. After deducting offering costs and expenses, Ferrari raised approximately Euro 497 million. The notes are listed on Euronext Dublin's Official List and will trade on its regulated market. The Central Bank of Ireland approved the related prospectus on 15 May 2024, and it is available on Ferrari's corporate website alongside other relevant documents.

Positive

• Ferrari successfully raised approximately Euro 497 million from its notes offering.
• The notes have a 3.625% annual interest rate, which may attract yield-seeking investors.
• The issue price was set at 99.677% of the principal amount, reflecting strong investor demand.
• The notes have been admitted to the Official List of Euronext Dublin, increasing their visibility and tradability.
• The Central Bank of Ireland's approval of the prospectus adds a layer of regulatory credibility.

Negative

• The offering net proceeds of Euro 497 million are slightly less than the Euro 500 million principal amount due to offering costs and expenses.
• The notes are not registered under the United States Securities Act of 1933, limiting their marketability in the U.S.
• Potential currency risk exposure due to the notes being denominated in Euros.

Financial Analyst

Ferrari's recent notes offering demonstrates a strategic move to secure long-term financing at a relatively modest interest rate of 3.625%. The issuance of €500 million in principal, with net proceeds of approximately €497 million, indicates a strong demand, as the issue price was 99.677% of the face value.

From a financial perspective, this funding could support ongoing and future projects, potentially including research and development, expansion, or other strategic investments. The low yield reflects investor confidence in Ferrari's stability and creditworthiness, given the current interest rate environment.

For investors, the key takeaway is Ferrari's ability to attract capital at favorable terms, which might contribute to sustaining its growth trajectory. However, it's important to consider the repayment obligations due in 2030, which could impact the company's balance sheet and cash flows in the long term.

Additionally, being listed on Euronext Dublin enhances transparency and may appeal to a broader investor base, potentially improving liquidity and investor sentiment towards Ferrari's securities in the market.

Market Research Analyst

The admission of Ferrari's notes to Euronext Dublin is a telltale sign of the company's commitment to maintaining transparency and adhering to regulatory standards. This move is beneficial in bolstering investor confidence and expanding the potential investor pool, especially among European investors who may find Euronext a more accessible market.

Given Ferrari's brand strength and market position in the luxury automotive sector, the successful placement of these notes also signals robust market confidence in the company's future prospects. The relatively low-interest rate suggests investors view Ferrari as a low-risk investment, which is a positive indicator for potential retail investors considering the company's securities.

For retail investors, understanding the significance of this successful capital raise can provide insights into Ferrari's financial health and its capability to manage debt. The ability to secure funding at favorable rates, especially in a potentially volatile market, underscores the company's strong financial strategies and market positioning.

corporate. ferrari.com

Maranello (Italy), 21 May 2024 – Ferrari N.V. (NYSE/EXM: RACE) announces the settlement of the offering, previously announced, of Euro 500 million in aggregate principal amount of 3.625% notes due on 21 May 2030, with an issue price of 99.677% (the “Notes”). The net proceeds of the offering were approximately Euro 497 million after payment of offering costs and related expenses. The Notes have been admitted to the Official List of Euronext Dublin and to trading on the regulated market of Euronext Dublin.

The prospectus related to the Notes, dated 15 May 2024, was approved by the Central Bank of Ireland and it has been published on the Ferrari N.V. corporate website together with other relevant documents.

Disclaimer

This press release shall not constitute an offer to sell or a solicitation of an offerto buy the Notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The Notes have not been and will not be registered under the United States Securities Act of 1933 (as amended), and may not be offered, sold, tendered, bought or delivered within the United States or to or for the account or benefit of U.S. persons absent registration or an applicable exemption from registration requirements.

Attachment

• FNV PR Settlement ENG 21 May 2024 Final

FAQ

What is the interest rate of Ferrari's Euro 500 million notes?

The notes have an annual interest rate of 3.625%.

When are Ferrari's newly issued notes due?

The notes are due on 21 May 2030.

How much did Ferrari raise from its recent notes offering?

Ferrari raised approximately Euro 497 million after deducting offering costs and expenses.

Where are Ferrari's recently issued notes listed?

The notes are listed on the Official List of Euronext Dublin.

Is the prospectus for Ferrari's notes available to the public?

Yes, the prospectus, approved by the Central Bank of Ireland, is available on Ferrari's corporate website.