Abengoa Lines Up $1.7 Billion From Funds Led by KKR, Oak Hill

  • Others funds in deal include Centerbridge, DE Shaw and Varde
  • Company publishes new business plan, refinancing agreement

Abengoa SA lined up international investors including Elliott Management Corp., KKR Co. LP and Oak Hill Advisors LP to inject as much as 1.8 billion euros ($2 billion) of new liquidity to help the renewable energy producer avoid insolvency.

The investing companies together with Attestor Capital LLP, Centerbridge Partners LP, D.E. Shaw & Co. and Varde Partners LP have been working with Abengoa “with a view to acting as anchor investors for the new money facility,” and their intention would be to provide the company with new loans, Abengoa said Wednesday in a regulatory filing.

Abengoa, which is under preliminary creditor protection, is stepping up efforts to win support from its lenders after reaching an agreement with its main creditors last week as the deadline approaches to reorganize or become Spain’s largest corporate insolvency.

Under Spanish law, creditors holding 75 percent of the debt must approve the restructuring. Abengoa must present a plan to a court by March 28.

The company’s new borrowing facility will mature in 2021. It will pay a 14-percent coupon interest, partly in cash and partly with more debt. It will be secured and super senior on a co-generation plant in Mexico, according to the filing. All creditors can participate in the new money facility, which will give control of 55 percent of the restructured company.

In a new business plan presented on Wednesday, Abengoa also said its enterprise value is about 5.4 billion euros. Its backlog of 2.6 billion euros in 2016 will climb to 4.8 billion in 2020. Earnings before interests, taxes, depreciation and amortization will reach 236 million in 2019, from negative 244 million this year, the company said.

Most of the existing debt will be reduced by 70 percent in exchange for 35 percent control in the restructured company. Total new corporate debt after the restructuring is finished will be 4.9 billion euros, according to the presentation.

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