German chocolate manufacturer Gubor Schokoladen has decided to cancel its plan to issue a corporate bond valued at €60 million ($64 million).
This decision results from the company’s careful evaluation, indicating that the placement volume fell short of their expectations.
Additionally, Gubor stated, “The aim of the cancellation is to ensure the best possible conditions for the group’s financing.”
Last month, Gubor Schokoladen announced plans to issue an indicative fixed-rate five-year bond, set to mature in 2029, with an expected yield range between 7.5% and 8.5%.
In communicating the cancellation, Gubor Schokoladen CFO Udo Zimmer explained that the “chosen credit metrics and the bond structure of the issue” did not sufficiently persuade investors.
Moreover, Zimmer emphasized, “The valuable feedback from investors will help us to respond even more precisely to market requirements when designing future transactions.”
Despite this setback, according to Zimmer, Gubor Schokoladen remains focused on expanding its “financing structure in the future,” with capital markets as a potential option.
Previously, the funds from the bond were intended to refinance existing bank loans and finance the acquisition of Hans Riegelein & Sohn.
Based in Cadolzburg, southern Germany, Hans Riegelein & Sohn specializes in seasonal chocolate products produced across six manufacturing facilities.
Established in 1953, this company serves a diverse market across Europe, North America, Australia, South Africa, and Japan, with an impressive annual revenue of approximately €260 million.
Gubor Schokoladen, as a family-owned enterprise, generates about €312 million in annual revenue, primarily catering to European markets.
Offering a variety of products, Gubor specializes in seasonal chocolates and year-round confectionery.
The company’s brands, including Riegelein, Sun Rice, Gubor, Friedel, and Eichetti, are produced in six facilities located in Germany and Poland.
Currently, these products are distributed in approximately 50 countries, with Germany being the primary market.
