Spanish property company Realia said on Friday that it has reached final agreement with its creditor banks regarding the refinancing of nearly EUR 1 bn of debt. The Madrid-based property company signed a preliminary agreement on the refinancing at the end of July.
Spanish property company Realia said on Friday that it has reached final agreement with its creditor banks regarding the refinancing of nearly EUR 1 bn of debt. The Madrid-based property company signed a preliminary agreement on the refinancing at the end of July.
Under the deal, the company has refinanced EUR 921 mln of debt which was due this year. The maturity date of the loans has been extended to end-December 2012. The financing will be used to fund Realia's development business, with the cost of the facility being 200 basis points above Euribor. The company will also receive a further EUR 80 mln loan facility from banks, it said.
Furthermore, the group's majority shareholders FCC and Caja Madrid are to provide an equity injection of a further EUR 100 mln.
The struggling group has total debt of EUR 2.3 bn and has switched its focus away from residential to commercial property to safeguard the future of the company following the bursting of the Spanish housing bubble. Realia reported EUR 158 mln in revenues for the first half of 2009, down 40% on H1 2008.
