Santander, CaixaBank, BBVA and Bankia To Refinance 50% of FCC´s Macro Loans

By February 28th FCC must covince the creditors that yet have not agreed on refinancing of the 4.600 million Euro debt, divided among the credits granted in 2013 and this year. The debt refinancing is said to be one of the greatest Spanish company financial restructuring in 2014, in which the most important participants are Santander, CaixaBank, BBVA and Bankia. In their hands lays refinancing of 2.300 milllions, a half of the debt. The construction company advised by Morgan Stanley wishes to restructure the debt in order to extend its maturity by 2017.

Santander appears as the main creditor with 850 million Euros, followed by CaixaBank with 600 millions. BBVA with 500 millions and Bankia with 355 millions also top the list of the principal creditors of FCC. In case of the two lattest, the financial relationship with the company applies doubly as the two entites have just finalized financing Esther Koplowitz´s personal debt associated with 50% of FCC, about 900 million Euros with maturity prolonged by 2018.

Last week FCC informed CNMV about 96% backup on the part of creditors. (…) By December Barclays (100 millons), RBS (70 millons), Société Générale (182 millons), BNP (178 millons) and BEI (70 millons) accepted the syndicated credit conditions.

Among the reasons alleged by the banks there is the requirement of general agreement on an extension of the deadline or the revision, a series of compromises the creditor makes with the debtor. (…) Also, foreign institutions need the risk assessment committees to approve their participation, which usually delays the process.

Legal Homologation

In any case, the unanimity is no more the suspension condition in the refinancing process if a company is supported by the majority of banking institutions. Thanks to the legal homologation the enterprises know that they can turn to the mercantile judge and claim an agreement when some of the entities not exceeding 25% of the liabilities reject the conditions approved by the rest. (…).

The refinancing appears few months after El Corte Inglés have succesfully closed another historical transaction involving almost 5.000 million Euros. As the department store company did, FCC is planning to turn to international debt market.

Source: Expansión

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