Abengoa Falls Most in Two Weeks After Loans Said to Lack Buyers

Abengoa SA shares declined the most in more than two weeks after two people familiar with the matter said that banks are struggling to sell the Spanish renewable energy company’s loans.

The company’s B shares slid as much as 11 percent on Friday, the biggest intraday drop since Sept. 2. They were 2.5 percent lower at 1.02 euros at 2:01 p.m. in Madrid. The Class A shares were up 0.6 percent. 

Lenders including Bank of America Corp. and Citigroup Inc. have tried to sell parts of Abengoa’s 1.4 billion-euro credit facility since the beginning of August, with a portion failing to sell at auction last week, even at a 60 percent discount, according to the people familiar, who asked not to be identified because they’re not authorized to speak about it. 

Abengoa is seeking to shore up its capital position with a 650 million-euro ($743 million) share sale and 500 million euros of asset disposals.

Separately, the Spanish newspaper Expansion reported that private-equity firms Blackstone Group LP and Cerberus are in talks with Abengoa to inject cash into the company.

Abengoa’s 375 million euros of bonds due April 2020 fell 6.6 cents on the euro to 40.4 cents, the lowest on record. Its 500 million euros of bonds due March 2016 dropped 14.7 cents on the euro to a record-low 59.6 cents.

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