MARANELLO - Ferrari N.V. (NYSE/EXM: NYSE:RACE), the Italian luxury sports car manufacturer, announced Monday its plan to offer unsecured debt securities, commonly known as "Notes," in a benchmark size, contingent on prevailing market conditions. The Notes are expected to be on equal footing with the company's other outstanding unsecured and unsubordinated obligations.
The proceeds from the sale of these securities will be utilized for general corporate purposes. These Notes will be offered and sold pursuant to Regulation S of the Securities Act of 1933, as amended, which means they will not be registered in the United States and will be available only to certain non-U.S. persons in offshore transactions.
In compliance with the relevant securities regulations, the offering is targeted at entities outside of the United Kingdom, investment professionals, and other high net worth entities as defined under UK law. The company made it clear that the press release is not an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction where such an offer or sale would be unlawful.
The issuance of the Notes will be accompanied by a prospectus prepared in accordance with the Prospectus Regulation of the European Union. The final prospectus will be made available to the public in due course, providing potential investors with detailed information about the offering.
This news is based on a press release statement from Ferrari N.V.
InvestingPro Insights
Ferrari N.V. (NYSE/EXM: RACE) has recently made headlines with its plan to issue unsecured debt securities, indicating a proactive approach to capital management. In light of this development, let's consider some key metrics and insights from InvestingPro that could be relevant for investors keeping an eye on Ferrari's financial maneuvers.
As of the last twelve months up to Q1 2024, Ferrari boasts a robust market capitalization of $72.92 billion, reflecting the market's confidence in the luxury carmaker's brand and business model. The company's P/E ratio stands at a high 52.01, which aligns with the InvestingPro Tip that Ferrari is trading at a high earnings multiple. This could suggest that investors are willing to pay a premium for Ferrari's shares, possibly due to expectations of continued strong brand performance and luxury market leadership.
InvestingPro Data also shows a healthy revenue growth of 14.75% over the same period, indicating that Ferrari is successfully expanding its financial top line. The gross profit margin is nearly 50%, underscoring the company's ability to maintain profitability amidst the costs of producing high-end vehicles.
For those considering long-term investment, it's noteworthy that Ferrari has raised its dividend for three consecutive years, as per an InvestingPro Tip, and the dividend yield as of the latest data stands at 0.65%. This commitment to shareholder returns, coupled with a 37.58% one-year price total return, may appeal to both growth and income-focused investors.
For investors looking for more in-depth analysis and additional InvestingPro Tips, there are currently 15 more tips available on Ferrari, including insights on earnings revisions, valuation multiples, and profitability forecasts. Access these exclusive tips and enrich your investment strategy with a special offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Ferrari navigates the financial markets with its latest securities offering, these InvestingPro Insights and data points provide a snapshot of the company's financial health and market sentiment, which could be valuable for investors making informed decisions in the luxury automotive sector.
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