The fall in stock market strength Abengoa owners to give more guarantees to banks {http://bit.ly/1J1OXOb}
In the last month engineering titles they have plummeted 61.7%. This decline is intensified when the company announced the capital increase, reaching registering falls of up to 30% during that time. From that day Abengoa has lost 46.9% of its value and today it ranks as the company's Ibex 35 falls in the year, 40.6%.
Corporate investment support in their latest annual accounts the existence of a risk for the development of the market value - "a large decrease of the share price of Abengoa (...) could mean increasing the number of shares pledged by reason of loans credit institutions ", he says, but yesterday from the company, also insisted that there is still sufficient margin. "As Corporate Investment and its subsidiaries have a much higher share of A shares and B (to those already pledged) there is a significant number of shares for which no guarantees granted".
Financing
To go to expansion and not be diluted, the equity of Benjumea need 370 million, which is currently looking at the market. The problem is that this is not the first time that recourse to external funding to maintain their participation. So, dated October 14, 2013 Corporate Investment signed a syndicated loan, maturing in 2018, for EUR 65 million, of which 63 million were allocated to subscribe to the capital increase carried out then by 450 million.
In that operation, the company issued 250 million shares to 1.8 euros each, representing a discount to the market price of 11 percent.
Total debt amounted to Corporate Investment December 31, 2013 to 153 million euros, representing 72% more than a year earlier. Of the total, 109.9 million corresponded to debts to credit institutions and 41.2 million in financial commitments to group companies and associates.
Although the 2014 accounts are not yet public, official sources admitted yesterday that Abengoa Corporate Investment keeps you pledged shares of the company as a result of bank debt of 39.7 million at the end of last year, to which must be added another 100 million euros over its subsidiary Ibisa (Initiatives Real Property). In total, according to these sources, there are now 11.3 million mortgaged same Class A shares and 32.6 million class B other for the first half and 16.9 million Class A and 83,000,000 Class B by debt of Ibisa.
Not all are, in any case, bad news and, beyond the fall in the stock market, there are other ratios for now if you are being met. Corporate investment is set at the banks, for example, compliance with a financial ratio of debt to equity, which hitherto has not tripped. The maximum limit of this ratio, fixed in the financing agreement of 65 million loan and applicable for the years 2013-2018, is 1.50, and December 31, 2013 was of 1,161.
Meetings with banks
To cope with the new extension of Abengoa, the Benjumea and other families are keeping for days meeting with banks to ensure the operation, and trading, among others, Citi, Bank of America Merrill Lynch, HSBC and Banco Santander to sign it. But the results do not seem clear.
In fact, one of these entities, Bank of America Merrill Lynch, which can be considered bank head of engineering, last week issued a note calling into question the ability of Benjumea going to enlargement. Thus, the company claimed that "there is a very limited visibility in the liquidity position of the family unit Corporate Investment, has agreed to participate in the capital increase."
Waiver most
One of the key issues in negotiations with banks to ensure that enlargement is the amount of capital that will be able to bring this society to enlargement. In the market they warn that if they fail this time the amount they need, it is likely that the Benjumea family have to give up control most of the capital of Abengoa.
The Benjumea are major shareholders of Corporate Investment. They have a 24.34% through nine Palmera and another 7.81% with Royblanca. The following are the Aya Abaurre that have a 15.20% with Inayaba, and Abaurre Llorente, who have a 9.86% with Olajangua.