Back to list Renta Corporación reaches an agreement to refinance its long term debt
Renta Corporación reaches an agreement to refinance its long term debt
. The operation, amounting to 380M€, involves the selling of some of its assets, allowing Renta Corporación to reduce its debt by half.
. The 2008 results confirm the existence of an international crisis: with the sale of 244 M€ in assets and after a provision on inventory of 63.8M€, the result has been negative by 111.5 M€.
RENTA CORPORACION Group has reached an agreement with financial institutions. In February 2007 Renta Corporación signed a syndicated loan for 500 M €. The terms and conditions of the new agreement allow Renta Corporación to refinance its long term debt with improved economic conditions that will help in the current market situation. The company has also lowered its debt exposure by selling some assets.
Regarding the deal, Juan Velayos, Renta’s CEO emphasizes that “in an atmosphere of confidence in our business model the financial institutions have provided us with much needed stability in the short and long-term, crucial in today’s market to get over the current crisis. Without a doubt we have tailored this agreement to the current situation in order to take advantage of the new cycle as soon as there is an upturn in the market. The success of the deal it is been possible mainly because all parties involved made a maximum effort to be flexible at all times. Now we herald the new business cycle on a more secure financial footing”. Part of the success of the deal has been possible thanks to the skilful management of Uría Menénez and N+1 as company advisors.
Barcelona, 27 February 2009.