Tubos Reunidos today signed the agreement to refinance its debt of 351 million euros with the main creditor banks, an agreement that will be extended soon to the rest of the entities.
With the signing of the agreement, the company has already convened the extraordinary meeting on July 27 – the ordinary one will be held this Thursday – in which the corresponding agreements will be adopted to implement the agreements agreed with the banks.
As the day in which the pre-agreement with the bank was reached, on June 11, the company considers this financing agreement essential because it provides ” financial stability to face the future and safeguard the value for shareholders, as well as continue with the business plan.
“We know that we are in a market characterized by a tough trade war, but we also rely on our industrial and technological capabilities as a result of the significant investments made in recent years,” said the president of Tubos Reunidos, Jorge Gabiola , what ” we must allow us to return to the path of stability as soon as possible. ”
Specifically, the agreement entails having 90 million euros (84.6 million euros of Bank debt plus Bond A of 5.4 million euros) with maturities aligned to the generation of funds provided for in the business plan and with a five-year repayment period can be extended for two more, as reported by the company. In addition, a 132.3 million convertible instrument will be issued that will entitle its holders to subscribe to Tubos Reunidos shares for the unpaid debt at maturity of 6 or 7 years or earlier in certain cases and conditions.
On the other hand, an issue will be made for an amount of 36.2 million euros convertible into ordinary shares under certain conditions. The continuity of the 92.4 million working capital lines is also guaranteed for the same debt terms.
The debt negotiation process began 12 months ago and has involved more than ten financial entities.
