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German chocolate maker Gubor Schokoladen has cancelled its plan to issue a corporate bond valued at €60m ($64m).
The branded and private-label manufacturer said the decision was reached following “careful consideration” as the placement volume did not meet the “company’s expectations”.
“The aim of the cancellation is to ensure the best possible conditions for the group’s financing,” the group added.
Gubor Schokoladen announced its plans last month and set an indicative range for the fixed-rate five-year bond, which was due to mature in 2029, of between 7.5% and 8.5%.
Announcing the decision to call off the issue, Gubor Schokoladen CFO Udo Zimmer stated that the “chosen credit metrics and the bond structure of the issue” failed to “fully convince” the investors.
“The valuable feedback from investors will help us to respond even more precisely to market requirements when designing future transactions,” Zimmer added.
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By GlobalData
According to Zimmer, Gubor Schokoladen is still focused on broadening its “financing structure in the future”, with capital markets being an option.
The funds from the bond were intended for repaying existing bank loans and financing the acquisition of Hans Riegelein & Sohn.
Hans Riegelein & Sohn, based in Cadolzburg in southern Germany, specialises in seasonal chocolate products from six production plants.
Established in 1953, the company serves markets across Europe, North America, Australia, South Africa, and Japan, generating approximately €260m in annual sales.
Gubor Schokoladen, a family-owned chocolate producer with annual revenues of around €312m, caters to European markets.
The company offers products including seasonal chocolates, as well as year-round confectionery
Gubor’s brands – Riegelein, Sun Rice, Gubor, Friedel, and Eichetti – are produced in six facilities located in Germany and Poland.
The products are distributed in about 50 countries, with Germany being the primary market.
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