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Yesterday, FCC informed the Spanish National Securities Commission (CNMV) of the terms of the refinancing agreement, which covers the bulk of its bank debt, amounting to €4.512 billion. This agreement provides financial stability to FCC over the next four years and will facilitate achievement of the objectives set out in the Strategic Plan.
At a meeting yesterday afternoon, CEO Juan Béjar informed FCC's Board of Directors of the final conditions of the refinancing agreement with the creditor banks.
Practically all of the lending banks, representing 99.98% of the related liabilities, participated in the refinancing agreement, which involved replacing several loan agreements with a new long-term syndicated loan aligned with the goals of the Group's Strategic Plan.
The new funding comprises two tranches: €3.162 billion and €1.350 billion. The second tranche (Tranche B) includes a right to convert the outstanding balance at maturity into newly-issued shares at market price, without a discount, by offsetting the account payable with equity, based on the issuance of warrants.
This new financing agreement matures in 4 years and may be extended up to at most 6 years in the event of conversion of Tranche B into FCC shares. The completion date is the date on which certain conditions precedent are met, which include notably the novation of the 5-year €450 million convertible bond issued by FCC in October 2009.
This agreement represents a milestone in the current Strategic Plan.
An additional possibility is the early repayment of Tranche B at a discount on its nominal value, with the consequent proportional reduction of financing costs and leverage, and deactivation of warrants. The overall agreement will notably enhance the ability to generate value for FCC shareholders.
As part of the Strategic Plan, FCC has sold several participations in non-core subsidiaries. The firm sold the 51% of the company that owns its renewable energy assets to Plenium Partners in January 2014.
In January FCC also completed refinancing of the debt of FCC Environment, its UK environmental services subsidiary, amounting to 381 million pounds sterling (€456 million) for a period of four years.
In June 2013, FCC reached an agreement to sell its 50% stake in Proactiva Medio Ambiente to French multinational Veolia Environnement for €150 million and 49% of water company SmVak, in the Czech Republic, to Mitsui for €97 million.