The main terms of the restructuring proposal for the current bondholders are:
- Capitalisation of 70% of the nominal value of outstanding debt (for a 100.000€ bond, the amount would be 70.000€) in exchange for 35% of shareholders equity of the new Abengoa, which would be proportionally distributed among existing financial creditors as is explained on page 51 of the financial restructuring proposal presentation of March 16th 2016. The monetary value of such stake will only be determined once the required capital increase has been completed.
- The remaining 30% (for a bond of 100.000€ nominal value, the new principal amount would be 30.000€) to be converted into a new bond or loan with the following terms:
•Maturity: 5.5 years, with the following amortisation scheme: •2.5% of principal in year 3 (750€ for each bond);
•2.5% of principal in year 4 (750€ for each bond);
•95% of principal at maturity (28.500€ for each bond)
•Coupon: (i) 0.25% cash annually and (ii) 1.25% PIYC (“pay if you can”) to be paid on an annual basis subject to certain conditions being met, otherwise will be capitalized and paid at maturity.
Additional information is available in the presentation of March 16th 2016 (only in English) available through the following link to Abengoa’s website:
Business Plan & Financial Restructuring Proposal