Urbaser SA, the waste-management unit of Spain’s largest builder, is seeking a 600 million-euro ($796 million) forward-start loan to extend a facility maturing in May by 2 1/2 years, according to two people with knowledge of the deal.
The subsidiary of Actividades de Construccion y Servicios SA is offering to pay interest at 375 basis points more than the euro interbank offered rate for the self-arranged term loan, said the people, who declined to be identified because the negotiations are private.
The debt originally totaled 750 million euros when signed in 2009, according to data compiled by Bloomberg. Madrid-based Urbaser hired 13 banks as bookrunners, with Societe Generale SA acting as agent, the data show.
A Madrid-based spokesman for Urbaser, who didn’t wished to be identified citing company policy, declined to comment.
Fellow Spanish borrower Abengoa SA (ABG), which develops solar power plants, has offered to pay the same rate of interest to extend 1.8 billion euros of loans by three years, two people with direct knowledge of the deal said.
Forward-start loans, created to provide liquidity to cash- strapped borrowers during the credit crisis, lock in financing before debt comes due in exchange for higher fees and interest rates. At their peak in 2009, European issuers had $42 billion of forward-starts outstanding, according to Bloomberg data.
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