About Ferretti Group

The Ferretti Group is a world leader in the design, construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of prestigious and exclusive brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN and Custom Line.

Ferretti defaulted on its debt repayment back in January following a drop in new orders, an increase in cancellations and a slowdown in payments on yachts under construction. Separately the company has informed certain suppliers that it will halt production of some lines for 10 weeks in response to the slowdown.

Private equity house Candover acquired Ferretti in 2006 for €1.7bn. Ferretti SpA’s nine yacht brands include Ferretti Yachts, Pershing, Riva and CRN.

About Senior Lenders

Euro 960,000,000 Senior Secured Credit Facilities and Euro 120,000,000 Second lien Facility

The Deal

Ferretti S.p.A. announces that the debt restructuring proposal has been accepted by The Royal Bank of Scotland for the senior loan and the financing pool of mezzanine lenders.

The agreement is the first step in the implementation of the Plan aimed at strengthening the Ferretti group’s financial situation. The Plan also envisages:

– reducing the long-term debt, from about € 1.1 billion to about € 550 million, against a conversion of credits into exit participation rights;

– the inflow of new funds through a capital increase of € 85 million, of which € 70 million underwritten by Chairman Norberto Ferretti and by some of the Group management, and the remaining € 15 million by Mediobanca – Banca di Credito Finanziario S.p.A., based on an agreement which is currently under negotiation, of which the main terms have been defined;

– further medium-term credit facilities granted by The Royal Bank of Scotland to fund working capital requirements totalling € 65 million;

– extension to medium-term of existing short-term facilities for further € 24 million granted by three major financial institutions, which are already Ferretti group partners.

Candover and Permira will no longer be included in the Group’s shareholder structure. The Group’s equity will be held by Norberto Ferretti and the Group’s management (38.5%), Mediobanca (8.5%) and senior and mezzanine lenders (for a total of 53% in exit participation rights). As a result of the agreement, Norberto Ferretti, the Group’s management and Mediobanca will hold 100% of the Group’s voting rights.

Once this agreement is implemented, the Ferretti group will have the capital strength and financial flexibility needed to face the challenges on the nautical market over the next few years, and continue to assert its position as a market leader. This acknowledgment is mainly linked to the soundness Ferretti has shown over the past few years, which continues to be the basis on which the Group aims to reaffirm its responsibility.

In the transaction, the Ferretti group was assisted by Rothschild as Financial Advisor, Chiomenti Studio Legale and Linklaters as Legal Advisors, and CBA Studio Legale e Tributario. The Royal Bank of Scotland was assisted byAshurst, law firm associated to Ashurst LLP. The other financial institutions were assisted by Clifford Chance and Lazard as financial advisors. AltaVenture was Special advisor of Lazard on this transaction.