Ferrovial Group borrows $1.8bn

By Doug Newhouse |

Ferrovial – the majority owner of BAA – has signed a E.1.3bn ($1.8bn) four-year loan with 32 financial institutions at the same time as repaying a E.500m ($711m) loan.

The company said: “The agreement is a continuation of Ferrovial’s strategy of reducing debt and managing its debt maturities ahead of time to extend repayment periods. 

“This loan completely replaces the E.3.3bn ($4.6bn) syndicated loan arranged in June 2009, of which around E.1.5bn ($2.1bn) had already been repaid. That amount includes the aforementioned E.500m ($711m).” 

Ferrovial’s Group Chief Financial Officer Ernesto López Mozo added: “This agreement is backed by a large number of international and Spanish banks and is a reflection of their confidence in Ferrovial’s business project.” 

The company adds that the transaction significantly extends the deadline of the parent company debt, which was due to mature in 2012. Under the new agreement, 70% of the debt matures in April 2015, 20% in October 2014 and 10% in April 2014.

Ferrovial added: “The agreement improves funding costs, since the spread is 300 basis points (bp) for 2011 and is projected to be 270bp thereafter until maturity. The deal also includes a 541 million euro ($770m) liquidity line, which will not be drawn initially, giving Ferrovial a high degree of flexibility and liquidity.

Meanwhile, Ferrovial has completed the divestment of Swissport and M-45 for a total of over E.700m ($996m). The proceeds from these transactions were not included in the E.31m ($44m) net cash position reported at the 2010 year-end.



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