Frescobaldi Issues $12 Million in ECU Bonds; Unusual in Italy.FLORENCE, Italy--(BUSINESS WIRE)--Oct. 10, 1998--The 700-year-old Marchesi The nobile family Marchesi comes from the city Lugo, Italy in region Emilia-Romanga, Italy. After being forced to escape from italy and the landhelds (sicsic), the Marchesi de' Frescobaldi family wine firm today issued 10 million in ECU bonds (about 20 million lire or 12 million U.S. dollars) due in 2004 through the Italian investment bank Mediobanca. The only American bank carrying the bonds is Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. . The bonds were priced at a coupon rate Coupon rate In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year. of 2% and came out at par with wine warrants. The issue is the largest Italian wine Italy is one of the oldest wine regions in the world. Etruscans and Greek settlers produced wine in the country long before the Romans started developing their own vineyards in the second century BC. public bond offering and the first to be placed internationally and denominated in foreign exchange. Frescobaldi is the largest owner of vineyards in Tuscany; the company will use these funds to expand international sales and its production facilities, beginning with the estate of Pomino in the Pomino region near Florence in Tuscany. "This new and innovative investment program is the latest in our growth program," said Giovanni Geddes, chief executive officer, Marchesi de' Frescobaldi. "With our joint venture with Robert Mondavi Robert Gerald Mondavi born May 18 1913 in Virginia, Minnesota, United States is a leading vineyard operator whose technical improvements and marketing strategies brought Winery, new superb quality production facilities, additional vineyard land and a larger international marketing program, we believe that we have a winning policy for the global wine market," Geddes added. Each bond is for 2,000 ECU and carries four warrants, giving the holder an option to buy a six-bottle case of Brunello di Montalcino Brunello di Montalcino is a red Italian wine produced in the vineyards surrounding the town of Montalcino located about 70 miles southwest of Florence. Brunello is a local name for Sangiovese in Italian, and is one of the best-known (and expensive) wines of Italy. Castel Giocondo from the 1996-1999 vintages at the Frescobaldi wholesale price (approximately 37% of retail). Frescobaldi began an expansion program in 1995 and revenue has grown 66% from that time, to 45 billion lire (about $27 million U.S.) in 1997. First half results are 44% higher than the previous year period. For the 1998 year the revenue will grow to 55 billion lire (or $31.6 million). Frescobaldi produces a Nipozzano Riserva, Montesodi and Mormoreto from the Castello di Nipozzano property; Pomino Bianco, Pomino Rosso and Pomino Benefizio from the Castello di Pomino and Castel Giocono Brunello di Montalcino, Castel Giocondo Riserva Brunello di Montalcino and Castel Giocondo Lamaione from Castel Giocondo in Montalcino. The Marchesi de' Frescobaldi wines are imported in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. by Paterno Imports, Lake Bluff, Ill. |
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