OHL culminates the most important operation in the Group’s history through the sale of OHL Concesiones to IFM

April 12, 2018

OHL culminates the most important operation in the Group’s history through the sale of OHL Concesiones to IFM

April 12, 2018

OHL has culminated the most important corporate operation in the Group’s history through the sale and transmission transaction of 100% of the share capital of OHL Concesiones S.A.U., on the part of OHL, to IFM Global Infrastructure Fund (IFM). It is a transformational operation that simplifies the financial structure and reduces the corporate debt of OHL, placing the company in a position of positive treasury.

The closing of the transaction took place according to the terms of the share purchase agreement signed on November 30^th 2017, that values OHL Concesiones in 2,775 million euros (Enterprise Value), resulting in a net cash consideration in favor of OHL, after the adjustments established in the Agreement (net debt, exchange rates and cash contributed to greenfield projects), of 2,158 million euros. The amount of net capital gains of the transaction is 48 million euros.

From this solid financial position, the company initiates a new stage centered on its construction business with a focus on geographic efficiency, reinforcing management by projects and risk control mechanisms.

Repayment of notes

As a consequence of the sale of OHL Concesiones, the note holders have been notified of their right to exercise a Put Option on the totality of the bonds presently in circulation, which amounts to 894 million euros with maturity 2020, 2022 and 2023 and a price of 101% of their nominal value plus accrued and unpaid interest to the amortization date of said notes. The acceptance period, which spans from April 13^th to May 12^th, is 30 days from the date the notification is sent.

The outstanding balance at 31 December 2017 of the bonds maturing in March 2020 was 187 million euros with a 7.625% coupon, the bonds with maturity in March 2022 had an outstanding balance of 394 million euros with a 4.750% coupon and the bonds with maturity in March 2023 had an outstanding balance of 313 million euros with a 5.505% coupon.