OHLA reaches an agreement with banks and bondholders that allows for a capital increase of 150 million | Companies

Today, OHLA enters three months of urgent negotiations with investors, banks and bondholders with the announcement of an agreement in principle with its principal financial institutions (syndicated facility and bilateral guarantee lenders) and with a portion of its bondholders to restructure and defer important debts. maturity in the short term. The final say, as the construction company acknowledged in a note sent to the National Securities Market Commission (CNMV), will go to each bank’s risk committees this week.

They must also reach out to bond investors and push for new additions to the agreement, but OHLA has provided the necessary support to table a 150 million capital increase at the shareholders’ meeting on the 22nd to clean up its balance sheet. The influx will partly respond to the maturity next March of bonds with an outstanding balance of $174 million. In addition, a second batch of 261 million bonds will expire in March 2026, expiring before the last day of 2029, reducing the current coupon from 10% to 9.75% boots, according to sources close to the conversations.

Before the understanding was communicated to the market this morning, OHLA management managed to defer a $40 million bridge loan signed in May 2023 as part of the sale of its services subsidiary Ingesan. The maturity date for this ICO-guaranteed debt was extended last week from November 19 this year to March 31, 2025.

A vital financial tool

As for bank guarantees, financial sources talk about the extension of queues over time for an amount close to 350 million. This is an important tool for the continuation of contracting work, as well as for the issuance of cash guarantees, which currently amount to $140 million. The same sources claim that OHLA will immediately use $100 million of that bail money. Another 30 million will return to cash if the company improves its credit rating, which is currently down to Moodys’ Caa2, and various financial conditions are met. These amounts, together with cash inflows expected from the asset divestment plan (Centro Canalejas, the CHUM hospital concession in Montreal and the service company Ingesan), should serve to continue to address debt obligations in the coming months.

In a statement submitted to the stock market regulator this morning, the firm, led by Luis Amodio, said it has “agreed in principle with certain holders of OHL Operations’ senior guaranteed notes, which represent 33% of the notes outstanding.” And he adds that a pact is possible subject to the signing of an agreement on imprisonment

(a period during which the sale of shares or interests is avoided) “by AHG (special interest group) bondholders and the company, reflecting agreements reached and which the parties are already working on.” Following this demand, the construction company will activate the process to obtain the adherence of the remaining bondholders.

This principle of agreement with the banks and a portion of their bondholders, OHLA explains, “suggests that proposals for capital increases will be submitted for approval by the company’s shareholders at the next extraordinary general meeting.” The company plans to make two capital injections: a first of 70 million with no right of first refusal for shareholders and a second capital increase of 80 million with a right of first refusal for members.

A consortium led by José Elias, founder and president of Audax Renovables, will provide the construction group with 30 million euros for the revitalization of OHLA. Joining him in OHLA will be businessman José Eulalio Posa (founder of MásMóvil), Inveready (manager led by Josep Maria Echarri) and renewable energy company Coenersol, pooling 20 million euros between them. This group, sources close to the negotiations explain, will have two of its own directors out of ten seats on the governing body once the capital increase is implemented.

Brothers Luis and Mauricio Amodio, the main shareholders of OHLA, are leading the investor attraction process, which also opens the door to Mexican real estate businessman Andres Holzer, who will invest 25 million euros. This new shareholder is assigned ownership of the board of directors.

The last 26 million allocated for the capital increase came from the Amodio companies, avoiding dilution and remaining as benchmark shareholders, perhaps trimming a couple of points from their current 26% position. The Amodio family will reduce from three representatives on the board to two but will place its most trusted man in Madrid, also Mexican Tomas Ruiz, as the chief executive agreed with new investors.

A total of €40 million of the increase remains in the hands of minority shareholders, who have a new issued title worth €0.25. In the first minutes of trading on the stock market this morning, OHLA shares lost 0.4%, falling to €0.30 per share.