Ferrovial has signed a 1.305 billion euro 4-year loan with 32 financial institutions. The company simultaneously repaid 500 million euro, thereby notably reducing gross parent company debt. The agreement is a continuation of Ferrovial's strategy of reducing debt and managing its debt maturities ahead of time to extend repayment periods. This loan completely replaces the 3.3 billion euro syndicated loan arranged in June 2009, of which around 1.5 billion euro had already been repaid. That amount includes the aforementioned 500 million euro.
"This agreement is backed by a large number of international and Spanish banks and is a reflection of their confidence in Ferrovial's business project," said Ernesto López Mozo, Group Chief Financial Officer.
The transaction significantly extends the deadline of the parent company debt, which was due to mature in 2012. Under the new agreement, 70% of the debt matures in April 2015, 20% in October 2014 and 10% in April 2014. The agreement improves funding costs, since the spread is 300 basis points (bp) for 2011 and is projected to be 270bp thereafter until maturity. The deal also includes a 541 million euro liquidity line which will not be drawn initially, giving Ferrovial a high degree of flexibility and liquidity.
In the first quarter of 2011, Ferrovial completed the divestment of Swissport and M-45 for a total of over 700 million euro. The proceeds from these transactions were not included in the 31 million euro net cash position reported at 2010 year-end.