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FCC Shareholders approve the new financing structure

06/23/2014 | Accionistas e Inversores

• FCC chairman Esther Alcocer Koplowitz highlighted "determination and courage in the adoption of extraordinary measures required at the moment" • Juan Béjar, Vice-Chairman and CEO, announced that the adjustment and writedown phase is complete and emphasised the international expansion of the Medio Ambiente and Water businesses

At the General Meeting held this afternoon in Barcelona, FCC shareholders ratified the Group's refinancing plan, organised with banks in March. The plan includes the refinancing of 4.512 billion euro in bank debt and the extension of the 450 million euro convertible bond issue.

The refinancing agreement, backed by 99.98% of creditors, structures a very large portion of bank debt in two tranches: tranche A, with 3.162 billion euro, and B, with 1.350 billion euro, which includes the right to convert to FCC shares in the event that the company is unable to repay or refinance upon maturity, in 2018. The second tranche is guaranteed by a warrant issue, approved by the shareholders. The General Meeting also supported the modification and extension of the 450 million euro convertible bond issue to 2020.

With shareholder approval of these two items, FCC has stabilised its financial situation and laid the foundation to achieve the objectives set out in its Strategic Plan, presented in March of last year and whose main items (such as debt and cost reduction and restructuring) are 80% complete.

Determination and courage

In her presentation, FCC chairman Esther Alcocer Koplowitz underlined "the determination and courage in adopting extraordinary measures required at this time". In her analysis of the past year, she said "we have undertaken to completely restore our businesses to health and applied strict financial discipline".

She also shared a few words about her mother and FCC's main shareholder, Esther Koplowitz, in recognition of her dedication and commitment, and also noted "the confidence deriving from the recent inclusion in our shareholder structure of leading, prestigious investors, both Spanish and international, to whom we want to extend our most sincere gratitude for their trust in FCC as well as our warmest welcome".

Improvement in profitability and cash flowJ

uan Béjar, Vice-Chairman and CEO of FCC, the Citizen Services Group, highlighted the focus on greater internationalisation in the Medio Ambiente and Water businesses. After discussing the main items in last year's income statement and adjustment processes that commenced with the Strategic Plan, Mr Béjar underlined indispensable objectives such as improving the profitability of all operations and the focus on cash flow.

With regard to this year, Mr Béjar spoke about debt containment, the 20% increase in EBITDA, 5% growth in revenues, and completing the 500 million euro divestment process.

He concluded his presentation on "looking towards the near future" by mentioning the four areas which must drive growth: "the capacity to invest in projects that increase EBITDA; a management model aimed at achieving results; a global management team that is responsible and committed to results; and an emphasis on international growth in the Medio Ambiente and Water businesses".

Other items on the agenda included the ratification of the re-appointment of Rafael Montes and Alicia Alcocer as proprietary directors and of Gonzalo Rodríguez Mourullo, Gustavo Villapalos and Olivier Orsini as independent directors.

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