FCC Faces Refinancing of Portland´s €1 Bn Debt

5/06/2014 – Expansion

Portland Valderrivas and FCC (holding 78% of the first) have started negotiations with lenders on refinancing of a €958 million debt reaching maturity in 2016.

However, a part of it (€50 million) shall be paid-off before July. Portland wants to delay the deadline and plead a stand still option due to present inability to face redemption.

Sources close to the talks claim at least one third of the liabilities (€300 million) has been sold to debt funds at considerably slashed prices. Funds like Apollo, GSO and Avenue Capital were among the buyers.

In 2012, Portland signed an agreement on borrowing €1.2 billion in syndicated loan with over 2o financial entities: €166 million from BBVA, €107 million from Santander and €95 million from Sabadell, for instance. Also West LB, BPI, Natixis and Instituto de Crédito Oficial (ICO) had their contribution in the financing.

The steering commitee consists of BBVA, Santander, La Caixa, Credit Agricole, Kutxa and Sabadell. In turn, KPMG has been named to conduct an independent auditory for the debtor.

In the first quarter, sales of Portland fell by 8.6% to €111 million. Its ebitda advanced 117% to €15.6 million, while losses showed €24.3 million. The company has got a positive outlook for the future as in the second quarter of the ongoing year the construction sector started to raise again. Yesterday, Portland depreciated on the stock market by 1.5% and sold for 7.17 euros a share.

The builder is open for mergers.

 

Original article: Expansión (by D. Badía)

Translation: AURA REE

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