Latest news
07/10/2009
FCC successfully completes its first issue of five-year subordinated exchangeable bonds
- Refuerza su estructura de capital y balance
- This move strengthens its capital structure and balance sheet
FCC has successfully completed its first placement in the international capital markets: a 450 million euro subordinated bond issue exchangeable for existing or new shares, at the company's election.
The issue pays an annual fixed coupon of 6.5% on a half-yearly basis over five years, and there is a conversion premium of 28% over the weighted average price on the day of placement. That is equivalent to a conversion price of euros 39.287 per share of FCC.
This issue enables FCC to achieve a range of objectives:
- Strengthen the capital structure of its balance sheet, due to the subordinated nature of the issue.
- Diversify its financing base to include the bond market as a supplement to bank funding. This expansion of funding resources is a cogent move to internationalise its capital structure, in line with FCC Group's extensive activity outside Spain; more than 43% of total revenues in 1H09 were obtained in other countries.
- Potential dilution of shareholders is minimal since FCC can exchange current and future treasury stock for the bonds.