Fomento de Construcciones y Contratas SA, a Spanish construction company, got its lenders to agree to extend the lifetime of 438 million euros ($585 million) of debt, according to a banker involved in the transaction.
The facility will take the form of a term loan maturing in April 2015 and replace a credit line that expires next month, the banker said. Twelve banks are taking part in the so-called forward start agreement, a type of deal that allows companies to push back the maturity of a loan before it comes due in exchange for higher fees and interest.
Barcelona-based FCC (FCC) will pay a margin of 375 basis points more than the euro interbank offered rate for the new loan, the banker said. A spokesman for FCC, who declined to be identified citing company policy, wouldn’t comment.
Banco Santander SA (SAN), Banco Bilbao Vizcaya Argentaria SA, CaixaBank SA and Bankia SA arranged the deal, FCC said in a statement.
FCC rose as much as 2.2 percent, the biggest intraday gain since March 14, and gained 1.7 percent to 17.42 euros at 1:51 p.m. in Madrid trading. The stock has lost 13 percent this year.
To contact the reporters on this story: Esteban Duarte in Madrid at firstname.lastname@example.org; Manuel Baigorri in Madrid at email@example.com
To contact the editor responsible for this story: Paul Armstrong at firstname.lastname@example.org