Spanish property company Reyal Urbis has signed a long-awaited agreement with banks to refinance its debt burden of EUR 4.6 bn. Under the new accord, the Madrid-listed firm has extended the maturity date on its debt to December 2015. The deal also envisages an initial period (until June 2013) in which the company will not pay interest or down payments.
Spanish property company Reyal Urbis has signed a long-awaited agreement with banks to refinance its debt burden of EUR 4.6 bn. Under the new accord, the Madrid-listed firm has extended the maturity date on its debt to December 2015. The deal also envisages an initial period (until June 2013) in which the company will not pay interest or down payments.
The company's creditor banks consist of as much as 50 creditors including international banks Barclays and Eurohypo.
As part of the deal, Reyal Urbis will also exchange debt for around EUR 400 mln worth of real estate. The company will transfer EUR 179 mln worth of property to bank Sabadell, while a further EUR 96 mln will be sold to Bancaja, EUR 50 mln to Caixa Galixia and EUR 44 mln to CaixaNova. Investment bank Lazard advised the company on the process.
Reyal Urbis has been seeking to renegotiate its debt for most of 2009.
The operation is Spain's second-largest property refinancing deal this year after the restructuring of Colonial's EUR 5 bn of debt in February.
