The agreement on the group’s debt, which amounts to 351 million euros, is “fundamental” for the future, says the company
Tubos Reunidos has reached an agreement principle for the refinancing of the financial debt of the company and its subsidiaries, as reported by the company to the National Securities Market Commission (CNMV). which has suspended the price of the company since this morning.
This agreement, pending final ratification in committees of the entities and their documentary formalization, will allow refinancing the Group’s financial debt amounting to an amount of 351 million euros as of April 30, 2019.
The refinancing will be subject to the fulfillment of certain conditions such as “the judicial homologation of the refinancing agreement and the approval by the General Shareholders’ Meeting, cost of working capital lines committed for an approximate amount of 92 million, a section A of 85 million with a growing repayment schedule and a 5 million Bond A, both with a five-year term that can be extended and three tranches convertible into ordinary shares of Tubos Reunidos are established, in certain cases, with a bullet maturity of six years, including as approximate amounts a section B of 122 million, section C of 36 million and a Bond B of 10 million, whose interests will not be payable in cash, but will increase the amount of the principal at maturity or in a case of conversion.
Sources of the company have indicated that the agreement is “fundamental” for the future, since “it manages to rationalize its debt and have greater flexibility in its financial commitments, which will contribute to achieving the objectives of its business plan within the current market needs “and facilitates” the viability and stability “of the company” in the short and medium-term “.