Abengoa negotiates restructuring and recapitalization with creditors

By Sheri Kasprzak

New York, March 10 – Abengoa SA and its creditors reached a restructuring and recapitalization agreement, according to a form 6-K filed Thursday with the Securities and Exchange Commission.

The terms of the agreement include the following:

• New money will be lent to the company totaling between €1,500 and €1,800 for a maximum of five years, with creditors entitled to 55% of the share capital;

• This financing ranks senior to old debt and is guaranteed by certain assets, including free shares of Atlantica Yield;

• The amount of old debt that would be capitalized will correspond to 70% of its nominal value, and the capitalization grants the right to subscribe to 35% of new share capital;

• The financial debt corresponding to the liquidity lines granted to the group Sept. 23 and Dec. 24, totaling €231 million, will be subject to refinancing by extending the term by two years with the debt secured by shares of Atlantica Yield;

• The amount of capital increase that would be reserved to those creditors who provide €800 million of bank guarantees would be 5% of the new capital; and

• At the end of the restructuring process, the company’s current shareholders would hold around 5% of the share capital with the opportunity to increase such stake in a percentage to be agreed upon that will not exceed an additional 5% if, within five years, the group has paid in full all outstanding amounts under the new financing to be provided in the framework of the restructuring.

Based in Seville, Spain, Agengoa is an industrial and technology group.

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