Abengoa expects to prepay €375 million of 2016 bonds by year-end

By Marisa Wong

Morgantown, W.Va., Sept. 24 – Abengoa, SA expects to prepay €375 million of its 2016 bond before year-end, according to a 6-K filing with the Securities and Exchange Commission.

The company is proposing to raise funds to reduce its debt and improve its liquidity position, as well as for existing capex commitments in the second half of 2015 and 2016.

The focus of the debt reduction will be on short-term maturities, the company said.

The company said it expects to convene an extraordinary general shareholders’ meeting on Oct. 10 to approve, among other things including an asset disposal program, the proposed debt reduction and to approve a capital increase of at least €650 million through a rights issue of new class A and class B shares.

A group of banks and two of the main shareholders have committed to underwrite or subscribe in the equity raise for a total of €650 million, according to another 6-K filing.

The banks have agreed to underwrite €465 million of class B shares to be issued in the capital increase.

Inversion Corporativa IC, SA has committed to invest a minimum of €120 million of new money in new class A and class B shares to be issued under the rights issue, while Waddell & Reed Investment Management has committed, on behalf of some of its affiliated funds, to subscribe for €65 million of new class B shares in the rights issue.

Seville, Spain-based Abengoa is an industrial and technology group.

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