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| ACS refinances its Iberdrola debt for an amount of 1,600 mln Euros Residencial Montecarmelo S.A., a wholly owned subsidiary of Spanish infrastructure group ACS, has signed with the bank Société Générale a financial transaction that allows to substitute the loan currently held with a syndicate of banks, in which Banco Bilbao Vizcaya Argentaria, SA ("BBVA") acted as agent. The transaction accounts for 1,600 million Euros. This refinancing has been signed for a period of three years. At the end of this period, ACS will decide the future steps of its investment in Iberdrola. The new agreement includes the subscription of certain derivative instruments and a stock loan agreement on Iberdrola shares, which eliminates the need to provide additional guarantees in the case of an Iberdrola share price reduction from the current levels. This transaction guarantees a stable long term financing of ACS's investment in Iberdrola without the requirement to provide guarantees depending on the Iberdrola share price, limits the downside economical exposure of ACS and grants at the same time the benefits of a potential increase of value in Iberdrola shares. This process is a fundamental step in the execution of Grupo ACS's corporate strategy, which is carrying out a rigorous financial plan to reduce debt and to eliminate the requirements of additional guarantees on its financial structure. write your comments about the article :: © 2012 Construction News :: home page |