OHLA is holding an extraordinary shareholders meeting this Tuesday in which it will submit for approval its restructuring plan which contemplates, among other milestones, the execution of two capital increases for 150 million euros. Authorization is assured with almost 26% of the Amodio brothers and the historically low participation of capital in the assemblies.
With this injection, 101 million euros will be released by the deposit banks that the construction company has as a guarantee for its line of guarantees – there will be more than 130 million if certain milestones are met – and about 45 million from the sale of the University Hospital Center from Montreal, in Canada (the sale price is 55 million but a part is collateral from the bank), you will obtain in the coming weeks nearly 300 million that will be allocated to the cancellation of debts, fundamentally (more than 200 million), and to the group’s operations.
Additionally, the brothers Luis and Mauricio Amodio, reference shareholders, and the Excelsior Times consortium, which welcomes the new investors led by José Elías – which is completed by José Eulalio Poza, Inveready and Coenersol -, plan to carry out a convertible bond issue for 50 million euros. That is, on the one hand they eliminate debt and on the other they issue new ones, although in the latter case on a temporary basis.
This approach was decided over the weekend and with this they seek to provide the group with sufficient liquidity. This is an alternative formula that they have found in response to the refusal of the G-5 banking (Santander, CaixaBank, Sabadell, Crédit Agricole and Société Générale) to grant a working capital line of 50 million. This is a historic demand from the construction company that Elías, on the one hand, and the Mexican Andrés Holzer – another of the new investors – had made their own as a condition for participating in the recapitalization of the company.
Although the banks have not agreed, the company and the new investors have considered all the preceding conditions met to be able to increase capital. OHLA reported this Monday that the Amodio and José Elías and their partners “have agreed to analyze, as part of the operations to strengthen the company’s liquidity, a possible issuance by the company of convertible bonds of up to 50 million euros of principal, maturing in six years“.
The convertible bonds, which would be subordinated to the senior debt, would have an interest rate in accordance with the market rate for this class of instruments, mostly PIK (pay in kind) and would be convertible at the option of the holders from the second anus. The conversion would be at a rate in line with the price of the capital increases (0.25 euros per share). This new issue, which must be submitted to the approval of the shareholders, It would further dilute current shareholders upon execution of the conversion.
Meanwhile, the company plans to undertake capital increases at the end of November. The first will be for 70 million euros without preemptive subscription rights, which will be covered by José Elías (27 million), Inmobiliaria Coapa Larca, from the Mexican Andrés Holzer (25 million), José Eulalio Poza (9 million), Inveready (6.3 million) and Coenersol (2.7 million); and one for 80 million with preferential subscription rights in which the Amodios will contribute 26 million and the Excelsior Times consortium 5 million. In total, therefore, they have committed to inject 101 million.
In addition, Excelsior Times will transfer rights to OHLA employees for an amount of up to 8.25 million. With it, There would be 40.75 million left to subscribe to reach 150 million. The company’s management trusts that the managers and current shareholders will support the operation. However, the issuance of 50 million convertibles could act as a hedge in the event that the entire second expansion is not achieved.
OHLA will use the funds obtained to pay off the ICO credit of 40 million that expires in November and the bond that expires in March 2025 for more than 170 million. In addition, it will refinance until December 2029 the bond maturing in March 2026 and whose balance amounts to more than 260 million – the principal of the two issues in circulation reaches 439 million when adding the PIK to the nominal 406.1 million. The interest on the bond will be at a level similar to that supported by the currentwith a total of 10.75% (coupon plus PIK).
In the negotiation with the banks, OHLA has managed to get the G-5 to grant it 210 million new guarantees and 60 million of the current line of 328.9 million are maintained. Added to this is a living guarantee of 45 million. In total, therefore, it will obtain 315 million in guarantees, compared to the 363.5 million it now has through syndicated financing and the line with Cesce coverage (34.6 million). Precisely The intermediation of the state company has been decisive for the banks to have agreed to provide new guaranteessince it will guarantee 60%. With this, the banks will release 101 million unavailable deposits – expandable to 136.8 million if certain circumstances arise.
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