Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

FCC Seen Arranging PIK Debt in $7 Billion Restructuring

Oct. 22 (Bloomberg) -- Fomento de Construcciones & Contratas SA is in talks with creditor banks to convert part of the Spanish infrastructure company’s loans into payment-in-kind debt, according to two people familiar with the matter.

The higher-yielding PIKs, which allow borrowers to roll up interest so that it’s paid when the debt comes due, will total about 1.5 billion euros ($2.1 billion), said the people, who asked not to be identified because the negotiations are private. The Barcelona-based company is currently seeking to refinance about 5 billion euros of loans, they said. The shares rose as much as 13 percent, the most since July.

A spokesman for FCC in Madrid, who asked not to be identified citing company policy, declined to comment on the negotiations. The company reported a first-half net loss of 607.6 million euros in August, compared with a profit of 53.4 million euros a year earlier.

Promotora de Informaciones SA, the biggest Spanish media company, is also in talks with creditor banks to convert part of its debt into PIK notes, people familiar with that matter said Oct. 4.

One or more entities linked to Bill Gates, the world’s richest man according to the Bloomberg Billionaires Index, bought a 6 percent stake in FCC for 113.5 million euros, according to an FCC statement yesterday. The entities bought 7.64 million shares that the company held as treasury stock at 14.865 euros apiece.

FCC’s shares traded at 17.23 euros, up 10 percent, as of 11:20 a.m. local time in Madrid.

To contact the reporters on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net; Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.