OHL´s capital increase, more than 7x subscribed

OHL has closed its capital increase for a total cash amount of 999,070,641 euros, through the issue and circulation of 199,018,056 new shares, reaching a subscription rate of 7.2 the total offering, upon expiration of the preferential subscription and additional allocation periods foreseen in the prospectus officially registered at the Spanish Securities Market Commission (CNMV) on 7 October. Next 2 November, trading of the new shares will begin on the Madrid and Barcelona stock markets. 

This highly positive response demonstrates the trust placed by OHL’s investors in the company, and their support to the company’s strategy, pursuing lower recourse debt and the endowment of funds to undertake investments in awarded concessions.

During the preferential subscription period, ending on 23 October, a total of 198,723,558 newly issued shares have been subscribed, representing 99.85% of the total shares offered; only 294,498 new shares (0.15%) remain that may be awarded in the additional tranche.

Given that during the additional subscription period a total of 1,244,965,766 shares have been subscribed (6.2x the total offered in the increase), the agent bank has carried out the proportional assignment foreseen in the prospectus; consequently, it has not been necessary to open the discretionary allocation period.

This capital increase will provide OHL with a stronger and more sustainable capital structure. Thus, approximately 632 million euros (net) of the total revenues will be used to reduce the company’s recourse leveraging, insofar as 340 million euros (net) generated by the increase will be used to finance new concessions already awarded.

Bond repurchase

Last 7 October, OHL announced a bond repurchase offer, subject to closing the capital increase, for all issued shares listed on the London regulated stock market. The company will eventually repurchase a total of 45.7 million euros, of which 37.6 million euros represent the issued shares with maturity in 2020 and 8.1 million euros refer to issued shares with maturity in 2023.

The outcome evidences the strong long-term back up provided by the company’s bondholders and the successful achievement of the capital increase, one of the largest transactions to be executed on the Spanish market.

The transaction is part of OHL Group’s financial policy, aimed at optimizing costs and reducing its debt, foreseen in the Strategic Plan.