FCC shareholders have approved the proposal for a capital increase of €1 billion at an Extraordinary General Meeting held on 20 November in Barcelona, Spain.
The purpose of the increase is to strengthen capital, reduce debt and improve results for the group.
In her presentation to shareholders, the Chairman of FCC, Esther Alcocer Koplowitz, stated:
"Our strategic objective is to create value for shareholders, whilst addressing the challenge of making the Group more profitable, robust and efficient". Esther Alcocer Koplowitz also highlighted the role played by the key shareholder "as essential to the creation of the solution proposed through the capital increase" and she thanked her for her "forward-looking contributions"
The Vice-Chairman and CEO of FCC, Juan Béjar, confirmed that the capital increase makes the Group "an attractive business prospect for national and international investors". He went on to describe FCC Group as "restructured, with a solid portfolio and positive growth outlook, focused on high-value business, with a management team dedicated to results and to all shareholders". He described the process of change as one that "places great value on the history of the Group, with an attractive share price".
With the funds obtained through the capital increase, FCC will pay off 1.39 billion euros of the Tranche B of debt, which accrues a rising interest rate of 11% to 16% and is convertible into shares after a period of five years, if it is not paid or refinanced (Payment in Kind or PIK).
Specifically, FCC plans to allocate 765 million euro from the capital increase to the amortisation of this tranche, which will settle €900 million of this loan after applying the 15% write-off already agreed with the main creditors. The rest of the funds raised will be allocated to Cementos Portland Valderrivas (€100 million) and FCC Environment (€100 million). The remaining €35 million will be allocated to operating expenses.
The interest rate on the remaining €490 million of Tranche B (€450 million of principal debt plus €40 million of capitalised interest) will be reduced from an average of 13.5% to 5%, resulting in a €160 million reduction in interest.