Abengoa has given this Friday its financial restructuring closed, with which the company, which came to accumulate a debt of 9,000 million euros, avoids the largest bankruptcy in the history of Spain and starts a new journey with Gonzalo Urquijo in front and a new shareholder composition.
In a note sent to the National Securities Market Commission (CNMV), the company explains that the agent of the restructuring has confirmed the closing of the process, known as ‘restructuring completion date’ and that the dates of the initial and final exercise of the Warrants will be issued on March 31, 2025, and June 30, 2025, respectively.
This Friday saw the start of the listing of the shares of the capital increase and the new ‘warrants’ of Abengoa, with which the share dilution and the creditor entry planned in the restructuring plan are executed.
The price of new securities and instruments has had an effect on the stock market close to 80%, which contrasts with the revaluation experienced in recent days by the shares of the company, close to 30% for class B and above 100 % for A.
Specifically, class A shares have closed this Friday’s session with a drop of 79%, to 0.055 euros, while those of class B has recorded a decline of 78%, to 0.024 euros.
The restructuring agreement contemplates that the current shareholders of the company go from controlling 100% to 5%, while the bondholders and ‘hedge funds’ will take 50% of the company, against 40% for the creditor bank. The remaining 5% is in the hands of guarantors.
The creditors have suffered a 97% reduction, while the remaining 3% is articulated through debt with a ten-year maturity without annual accrual of interest and without the possibility of capitalization. In parallel, the funds that inject the 1,169 million “new money” will add 55% of the capital.
On Friday, Abengoa shares all these effects, that is, the stock dilution of the current shareholders, the usual loss of value of the securities resulting from the capital increase and the debt swap for shares, as well as the possibility of that the new shareholders decide to put the recently received shares on sale.
The capital increase has involved the issuance of 1,577 million new class A shares and 16,316 million class B shares. In addition, 83 million warrants have been issued on A shares and another 858 million on type B shares.
The execution of the capital increase and the issuance of warrants takes place after the so-called ‘agent scrow’ successfully met the 1,169 million euros of ‘new money’ for its injection into society, which allows Complete the financial restructuring of the company.
According to the rescue agreement with the creditor banks and the funds for the restructuring of its financial debt and its recapitalization, the group would receive an injection of ‘new money’ of almost 655 million euros.
The total amount of the ‘new money’ that was agreed to lend to the group amounts to 1,169 million euros, although this amount includes the refinanced amounts of the loans https://green-touch.org/ received by the group in September and December 2015 and in March 2016 – some 515 millions of euros–.
In addition, 307 million euros of new lines of guarantees were included. The financing entities that contribute it will be entitled to receive 5% of the new share capital of Abengoa. Of this amount, about 50 million will be to bid for new projects and rest to advance those that are already underway.
The committee of banks that participated in the negotiations for the restructuring was composed of Bankia, Banco Popular, Banco Santander, Caixabank and Credit Agricole, while the group of new money investors was composed of Abrams Capital, The Baupost Group, Canyon Partners, The DE Shaw Group, Elliott Management, Oaktree, and Värde.