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Cementos Portland Valderrivas pays off eur 50 million in debt

29/09/2014

Cementos Portland Valderrivas pays off eur 50 million in debt

  • CPV continues with its refinancing plans and reduces its rate of debt, within a setting that shows signs of recovery
  • FCC shows its support for the cement subsidiary by contributing EUR 20 million through a subordinated loan 

FCC shows its support for the cement subsidiary by contributing EUR 20 million through a subordinated loan 

 

Cementos Portland Valderrivas pays off eur 50 million in debt

Cementos Portland Valderrivas has repaid EUR 50 million of the company's debt, thus complying with the commitment undertaken with the lenders in the syndicated funding agreement totalling EUR 1,114 million signed on 31 July 2012. After paying off this amount, its financial debt is reduced to EUR 956 million.
The payment was made primarily with Valderrivas own funds, with assistance from FCC, the parent company of the Group, which contributed EUR 20 million through a subordinated loan.

Although cement consumption in Spain has seen a cumulative 2% drop since 31 August, this decline has lessened as the year progresses, giving us a glimpse of upcoming changes in the trends.

Despite this decline in consumption, the effects of the drastic adjustments applied by the Group in Spain, which will be completed in coming months, in conjunction with the strong business in Tunisia, are having a positive impact on results (the Group earned EUR 49.5 million in EBITDA in the first half of 2014, which is the same figure as that earned in all of 2013) and on cash flows, thus enabling the company not only to pay off interest but also a part of the principal on the loan.


After making this payment, Cementos Portland Valderrivas is not required to make any further loan payments until July 2015. During this period, it will continue to search for different options for refinancing the Group's debt, within an increasingly positive setting.
 

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