OHL announces that an agreement has been reached for the recapitalization of the company and the renegotiation of its two bond issues

In order to reinforce OHL’s financial situation, reducing its debt and strengthening its capital structure, the company announced today that an agreement has been reached in relation to OHL’s recapitalization operation and the renegotiation of the terms of its two outstanding bond issues: one maturing in 2022, with an outstanding balance of 323 million euros, and another maturing in 2023 with an outstanding balance of 269.9 million euros. The new bonds will mature in March 2025 -50%- and in March 2026 -the remaining 50%-, and will amount to a maximum of €488.3 million.

The basic pillars on which the operation is based are:

• Injection of equity in the company, through the execution of a capital increase with preferential subscription rights to the shareholders for an amount of €35 million, which will be complemented by a second monetary capital increase with exclusion of preferential subscription rights aimed at the Amodio family and Tyrus Capital, to cover their investment commitments of €37 and €5 million respectively, in the amounts that they are not able to pay in the first increase.

  The price at which the shares will be issued in the capital increase will be €0.36 per share.

• Renegotiation of the terms of the bonds through a combination of the removal of at least 10%, capitalization of part of the bonds through a capital increase by offsetting credits at a price per share of €0.74 and the exchange of the remaining bonds for newly issued and later maturing covered bonds.

• Corporate restructuring of the company, so that a substantial part of the business will be developed in the future, directly or indirectly, by a newly created subsidiary, Nueva OHL, which will be the issuer of the new bonds.

Todos los aspectos de la operación se recogerán en un folleto informativo que OHL espera someter a la aprobación de la Comisión Nacional del Mercado de Valores y de una Junta General Extraordinaria de Accionistas una vez obtenidas las autorizaciones correspondientes.

Esta operación reforzará la estructura de capital generando una nueva OHL, que contará con un balance fortalecido que le permitirá hacer frente a su plan de negocio, confirmando la apuesta de la compañía y de su equipo gestor por volver a la senda de recuperación y crecimiento.

More information:

• Inside information. On business and financial situation (download here)
  
• Cleansing presentation: “Laying the foundation for a successful future” (download here)

Mr. Luis Amodio and Mr. Mauricio Amodio, OHL’s President and Nominee Director.