New financing structure for Cementos Portland Valderrivas’ parent company approved


Updated Tue, 01 Jul 2014 15:08:55 GMT

FCC shareholders have ratified a refinancing plan organised with banks in March. The plan includes the refinancing of €4.512 billion in bank debt and the extension of a €450 million convertible bond issue.

Spain’s FCC group includes Cementos Portland Valderrivas, which operates seven cement plants in Spain, three in the US and a 2 million tpa plant in Tunisia, in addition to an import terminal in the UK.

The refinancing agreement, backed by 99.98% of creditors, structures a very large portion of bank debt in two tranches: tranche A (€3.162 billion) and B (€1.350 billion), which includes the right to convert to FCC shares in the event that the company is unable to repay or refinance upon maturity, in 2018. The second tranche is guaranteed by a warrant issue, approved by the shareholders. The General Meeting also supported the modification and extension of the €450 million convertible bond issue to 2020.

With shareholder approval of these two items, FCC has stabilised its financial situation and laid the foundation to achieve the objectives set out in its Strategic Plan, presented in March 2013. The main points of the plan, which includes debt and cost reduction and restructuring, are 80% complete.

Speaking at the group’s General Meeting in Barcelona, FCC Chairman Esther Alcocer Koplowitz, stated: “We have undertaken to completely restore our businesses to health and applied strict financial discipline.”