New York City, NY – USA
Supranext $10M Mini Bond:
Supranext is in the finalization of the issuance and placement for its “bridge bond” of $10M, named “Supranext mini bond”. This mini bond has a $10M face value, 4 years duration and an annual fixed coupon set at 7%, for a total of 28% interest gains calculated on the principal. Both the principal and coupons are fully secured, with the covenant that, in case of early redemption, all unpaid coupons will need to be cashed jointly with the principal’s reimbursement. This bond is a “once-in-a-lifetime” deal that will not be repeated by Supranext in the future; it is meant to have these special features only in order to provide in the fastest possible manner the $10M necessary for Supranext to catalyze the further issuances of the larger series of bonds. The Bonds’ engineering, origination, sale and management of their raised liquidities remains as the company’s characteristic activity for its ongoing raising of long term capital funds and their deployment through Supranext’s operative holdings, sub-holdings and sectorial/territorial matrix of subsidiaries across the world. At this stage, the middle of February 2020, Supranext is finalizing its negotiations to sell its mini bond to any of its 6 proposed buyers, whoever will be the fastest. These proposed buyers are fixed income investment funds, hedge funds and family offices located primarily in Europe. The Supranext mini bond will be automatically redeemed by the issuing corporation at the time of the placement of any bond of the RRR1 or RRR2 series, reimbursing the $10M principal plus the matured and not yet matured coupons, potentially forming a risk-free, large and fast return for the buyer who will acquire said mini bond, to be absorbed and redeemed by any first major bond of the RRR1 or RRR2 series within a few weeks/months, optimally within 90 days as forecasted by Supranext, since its inception.
Collateral = cash deposit of $12,800,000 in a IOLA escrow account at Citibank – (USA)
$12,800,000
Face Value Mini Bond
$10,000,000
Coupon
7% p.a.
$700,000 p.a.
Coupons as total
$700,000 X 4 years = $2,800,000
Early redemption penalty fee
Equal to all unpaid annual coupons
Duration
4 years
Type
Fixed Income, Balloon Bond
Forecastable effective duration based on vicinity of placements of RRR1 series of Supranext Bonds (whichever first Bond of RRR1 will be placed, it will redeem the Mini Bond through Supranext)
60 – 90 days
Additional covenant
The 1st Bond of RRR1 series of Supranext Bonds will mandatorily reimburse the Mini Bond through Supranext (the company will use the raised liquidity from the 1st Bond of RRR1 to reimburse the Mini Bond)
Supranext RRR1 and RRR2 series, each series composed by 100 bonds X EUR100M bond:
The Supranext mini bond will support the set up of structure, marketing and advertising efforts that the corporation will deploy in order to issue and sell on the global financial markets its two series of bonds, denominated RRR1 and RRR2, where RRR stays for “Roma Renovata Resurgat”. The RRR1 and RRR2 series are expected to be placed on markets during the spring of 2020. Other RRR series will follow right after.
Each RRR1 and RRR2 series are composed of 100 bonds of EUR100M, for a total of EUR10B each series, mainly dedicated to the recapitalization and rescue of large Italian corporations. Supranext plans to sell the majority of these bonds to Italian banks that, under the rules of Basel II and Basel III, cannot lend anymore to their troubled clients because of the deterioration in bankability ratios of these clients that have encountered major difficulties. Supranext offers a de facto triangulation where its bonds offer a superior safety for those Italian banks, thanks to the inner mechanisms of cross collateralization upon which Supranext has engineered its system, which ultimately doesn’t rely only on the value of the underlying assets, namely the stocks and shares of targeted corporations to be rescued through their recapitalizations. This mechanism offers a safer escape to Italian banks that otherwise would be seriously damaged by heavy write-downs on their credit books. David Baccini, (“David”), on behalf of Supranext, the corporation that he controls, has gathered an extensive network of open channels with representatives of large troubled Italian corporations, mainly in the engineering & construction, oil & gas, shipping and aviation sectors. David also has direct contact with several Italian law firms that represent the Italian banks who are exposed against those troubled industrial groups. Outside of Italy, David has direct and indirect contact with representatives of several governments where Supranext bonds can fill the financial gap for major infrastructural projects, military and police procurements, etc.
The remaining bonds of RRR1 and RRR2 will be deployed to build up the first layer of Supranext’s global presence through a network of offices, acquisitions of strategic companies such as banks, investment funds, financial guarantors, media agencies, B2C and B2B marketplaces, etc. Aside from Italian banks, Supranext will seek for RRR1 and RRR2 placements at institutional investors mainly in Europe and Asia.
Supranext control and management:
As soon as the Supranext mini bond is placed, an ex colleague and friend of David, currently employed in a pivotal senior position at a global Rating Agency, will resign to take the seat of President of Supranext, with David maintaining the role as Chief Executive Officer. Other long-time business associates and friends of David, currently employed as investment bankers, consultants, lawyers, etc. in other firms will take roles in the top management of Supranext. For all remaining top and middle management positions, Supranext has a contract with a leading global “headhunting” firm located in London, specialized in the financial sector, that will cover this task. This UK company will prioritize the selection of 30 bond sellers that will form the initial sales desk for the global placements of the Supranext bonds. This sale desk is projected to expand in conjunction with the bonds’ issuances.
Supranext has special features as a corporation itself, being controlled by one individual only, David, who autonomously has self imposed a ban on the sale of shares and collection of dividends out of consolidated profits for the next 50 years from the placement of the Supranext mini bond, thus allowing an ongoing recapitalization of Supranext by the retention of all its consolidated profits to be generated by its subsidiaries, business divisions and controlled entities. Such imposition on consolidated profits will allow Supranext to expand its operations, bonds’ issuances and maintain a positive dynamic financial equilibrium, while the imposition on the shares will assure stability and clarity about the strategy.
Supranext’s advisors:
Supranext is supported in its mission by a tier 1 global law firm, consulting firm, media agency, executive search firm and several other niche and boutique firms which cover specific areas of its overall business model. The names of such firms will be disclosed during negotiations with proposed bonds’ buyers.
Supranext’s prospective financial strength and aimed rating vote:
Supranext has committed capital assets for over $800M, call options on an additional $2.5B and advanced negotiations on an additional $5.0B. All bonds to be issued by Supranext will always have their coverage ratio yet to be determined case by case, but under any circumstance above 100% between the NPV of the underlying guaranteeing assets and the composition of principals plus coupons.
Supranext will have all its long-term bonds rated, except the mini bond that is willing to be redeemed within a few weeks/months of its inception, aiming to the “Single A” as the initial ranking level, to be enhanced on an annual basis through rating vote revisions along time. Supranext bonds will have durations that scale from 10, 15, 20, 25 and 30 years in order to not create “bottlenecks” of redemptions happening in a compressed period of time.
Supranext will provide further notices about its bonds’ placements during the upcoming days.
New York City, NY – USA
