Creditor banks Santander and Barclays have reportedly sold €225 mln worth of loans to Spanish property Group San Jose for an over 50% discount to their face value.
Creditor banks Santander and Barclays have reportedly sold €225 mln worth of loans to Spanish property Group San Jose for an over 50% discount to their face value.
According to Spanish paper El Confidencial, Bank of America Merrill Lynch is buying the credit facilities on behalf of an unnamed opportunistic fund.
Santander is believed to be selling €190 mln of debt, while Barclays is disposing of a further €135 mln.
San Jose, with a debt load of over €1.6 bn, is in talks with its lenders for a refinancing of its credit facilities. The property company counts a number of Spanish cajas or savings banks among its creditors, including Caixa Geral, Unicaja, Caja3 and CaixaBank. Other lenders are Banco Popular, Novagalicia, BBVA, Banco Sabadell, Catalunya Banc, Ceiss and Kutxa.
San Jose suffered a 64% decline in earnings before interest, taxes, depreciation, and amortization
(EBITDA) in the first half of 2014, largely as a result of 'price adjustments'.
