FCC Jumps After Report on $6.3 Billion Refinancing: Madrid Mover

Fomento de Construcciones y Contratas SA, the Spanish builder that counts Bill Gates and George Soros among investors, rose in Madrid after Expansion newspaper said the company expects to announce a refinancing agreement today.

FCC climbed as much as 4.9 percent to 16.97 euros, the highest since Feb. 28 and was at 16.88 euros at 10:54 a.m. in Madrid. The company has backing from 99 percent of its lenders to refinance about 4.6 billion euros ($6.3 billion) of loans and lengthen their maturity to 2017, Expansion reported, citing people with knowledge of the situation it didn’t name.

The Barcelona-based builder, which has diversified into water and waste management, is recovering from the legacy of its debt-driven expansion that started in 2005. A refinancing agreement will give the company a sustainable financial structure, allowing it to improve profitability and reduce debt, FCC said last month.

A spokesman for FCC in Madrid declined to comment on the negotiations with creditors.

The company said last month it extended its loans to today and had support from more than 95 percent of its lenders to refinance them. Microsoft Corp. founder Gates acquired a 5.7 percent stake in FCC in October. Billionaire investor Soros followed by buying about 3 percent of the company.

FCC had net financial debt of 5.98 billion euros in 2013, down from 7.1 billion euros at the end of 2012, according to a Feb. 28 filing. The company reported a net loss of 1.51 billion euros in 2013, compared with 1.03 billion euros the year before.

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