FCC Gets Support From Holders of 99.98% of Loans for RefinancingEsteban Duarte
Fomento de Construcciones y Contratas SA, the Spanish builder that counts Bill Gates and George Soros among investors, got support from almost all its lenders for a 4.5 billion-euro ($6.2 billion) refinancing deal.
Holders of 99.98 percent of its existing debt agreed to a four-year refinancing agreement, according to a regulatory filing. The new facility comprises a 3.16 billion-euro portion paying an initial interest margin of 3 percent more than benchmark rates and a 1.35 billion-euro tranche paying an initial margin of 11 percent.
The Barcelona-based construction company, which has diversified into water and waste management, has been in talks with its 37 lenders on a refinancing plan to extend debt originally due to be repaid last year.
The debt deal is a “key milestone” in FCC’s strategy and will strengthen the company’s financial structure, according to the filing. FCC had net financial debt of 5.98 billion euros at the end of 2013, according to its latest annual report.
FCC is also seeking approval from bondholders to extend convertible notes and reduce the securities’ conversion price, according to today’s filing. The company may use a Spanish legal process to obtain the changes if it doesn’t get sufficient support for the request, it said.