Spanish property company Colonial has announced plans to sell EUR 1.4 bn worth of convertible bonds as part of programme to reduce its debt. In a statement to the stock market regulator, the company said it will seek shareholder approval on the new measure during a meeting to be held on November 20. Additionally, the company unveiled plans to pull out from a merger agreement with Riofisa as it said the sale of the shopping centre unit is 'essential' to improve the company's debt structure. The de-merger is also due to be discussed in November.
Spanish property company Colonial has announced plans to sell EUR 1.4 bn worth of convertible bonds as part of programme to reduce its debt. In a statement to the stock market regulator, the company said it will seek shareholder approval on the new measure during a meeting to be held on November 20. Additionally, the company unveiled plans to pull out from a merger agreement with Riofisa as it said the sale of the shopping centre unit is 'essential' to improve the company's debt structure. The de-merger is also due to be discussed in November.
The measures are part of a vast process launched by Colonial earlier this year to restructure its EUR 7 bn in syndicated debt. Banks Calyon, Eurohypo, Goldman Sachs International and The Royal Bank of Scotland agreed in September to extend the maturity date on a EUR 6.5 bn financing facility to five years after Colonial committed to sell 33% of its majority stake in French unit Société Fonciére Lyonnaise (SFL), its 15% stake in builder Fomentos de Construcciones y Contratas (FCC) as well as its shopping centre development unit Riofisa.
