Troubled Spanish property group Colonial has placed EUR 1.31 bn in convertible bonds, mostly with its creditor banks which have underwritten the issue. The banks are Goldman Sachs, Eurohypo, Calyon and Royal Bank of Scotland as well as Banco Popular and La Caixa.
Troubled Spanish property group Colonial has placed EUR 1.31 bn in convertible bonds, mostly with its creditor banks which have underwritten the issue. The banks are Goldman Sachs, Eurohypo, Calyon and Royal Bank of Scotland as well as Banco Popular and La Caixa.
The move follows the group's announcement in November that it hoped to raise up to EUR 1.42 bn with a convertible bond issue. It said shareholders had the option to buy the bonds until 20 December, after which the company's creditor banks were to purchase the unsubscribed bonds for a maximum of EUR 1.31 bn.
In early December Colonial warned that it risked defaulting on its debt if the bond issue was not successful. The firm had net debt of EUR 8.975 bn at the end of the third quarter of 2008.
