Ferrari’s New €350 Million Revolving Credit Facility Highlights Lower Costs and Strategic Agility
Key Facility Change: Lower Cost, More Flexibility
Ferrari N.V. (NYSE/EXM: RACE) has inked a new €350 million unsecured committed revolving credit facility (RCF), targeting general corporate and working capital needs. The arrangement, effective December 2025, stands out for its more favorable terms—especially a lower cost of capital compared to the previous facility. Importantly, this move signals not only financial discipline, but also Ferrari’s ability to leverage its robust credit profile in the current market.
Tenor Extension and Banking Syndicate Bolster Confidence
This latest RCF features a five-year initial term, complemented by two one-year extension options. These can be exercised on the first and second anniversary of the signing date, contingent on both Ferrari’s request and the participating banks’ approval. By engaging twelve international relationship banks in the facility, Ferrari demonstrates solid backing and global banking confidence—a key endorsement as it continues to expand its luxury and motorsports legacy.
| Key Facility Detail | 2025 Facility | 2026 Facility (Replaced) |
|---|---|---|
| Facility Size | €350 million | €350 million |
| Security | Unsecured | Unsecured |
| Term | 5 years (+2 possible 1-year extensions) | Until Dec 2026 |
| Cost of Capital | Lower than prior facility | Higher |
| Bank Group | 12 international banks | Not specified |
What This Means for Ferrari’s Financial Position
Swapping the old facility for this new, lower-cost credit line directly enhances Ferrari’s liquidity profile. It arms the company with the financial agility to navigate cyclical demand, invest in growth initiatives, or manage working capital, all while reducing financing costs. With continued support from a dozen top-tier relationship banks, Ferrari remains well-positioned to pursue both short-term operational needs and long-term strategic objectives in luxury automotive and lifestyle segments.
Takeaway: Enhanced Strategic Flexibility Without Compromising Cost Discipline
Ferrari’s ability to secure improved credit terms reaffirms its status as a highly credible borrower, further underlined by the participation of a broad syndicate of international banks. For investors and stakeholders, this underscores a proactive financial approach and a healthy balance sheet—key ingredients as Ferrari steers towards future opportunities in both luxury and motorsports markets.
Those following Ferrari will want to track how this greater flexibility plays into the company’s broader strategic moves—whether new car launches, brand partnerships, or navigating global supply chains in an evolving economic landscape.
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