Banks Give the Green Light to Soros´s Proposal on Refinancing FCC

30/06/2014 – Expansion

Fomento de Construcciones y Contratas (FCC) has successfully closed this year´s largest refinancing in Spain. Its lenders signed an agreement on the €4.53 billion debt payment suspension until 2018. Moreover, at the last meeting, the construction company´s creditors approved extension of the due date for €450 million bonds issued in 2009.

Out of the 35 lenders, Corporación Mondragón-Caja Laboral refused to sign the contract. The entity lent €1 million to FCC, around 0.02% of the total debt scope. The rest of the banks decided to split the amount among themselves.

Apart from the significant refinancing, Esther Koplowitz (the main shareholder of the group via B-1998) is carrying out talks on her €1 billion loan due still before August with BBVA and Bankia. Koplowitz seeks partners to refinance the credit. Soros is the sure candiate but the businesswoman has also negotiated with US funds and investors from the Persian Gulf.

Last week, Soros hired lawyers from Cuatrecasas as legal advisors and proposed buying the debt of Koplowitz and becoming the main stakeholder of FCC.

The loan of the firm comprises of two parts: a nearly €3.2 million one at an interest rate of 3-4% rising annually and an almost €1.35 million indebtness that assumes conversion into equity at 11% to 16% rate.

Around 59% of the entire debt is in hands of Santander that lent €866 million to FCC, CaixaBank – €599 million, BBVA – €523 mn, Bankia – €350 mn and Popular – €345 mn.

Along with the refinancing, the company´s cement manofacturer Portland faces another €1 billion indebtness. At the moment, funds like Apollo, GSO and Avenue Capital hold over 30% of its liabilities which hampers the negotiations.

 

Original article: Expansión (by D. Badía & C. Morán)

Translation: AURA REE

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