Sacyr : fully amortizes the loan for its shareholding in Repsol

10/04/2017

• With this long-term hedging transaction, Sacyr amortizes in advance the 769 million euros of the current loan.
• It guarantees a minimum value of €10.90 per share.
• The hedging transaction linked to this amortization is in addition to those completed in 2016, maintaining the total upside potential of the shares.

Sacyr significantly and definitively reduces its exposure to oil market fluctuations thanks to a final hedging transaction through derivatives involving 72,704,411 Repsol shares (60 % of its shareholding). This transaction is in addition to those completed for this purpose in 2016.

Sacyr will use the funds obtained from this hedging operation, involving a derivative for more than five years, to immediately and definitively amortize a total of 769 million euros of the loan for its shareholding in Repsol, thus reducing debt in the company's balance sheet and releasing it from the guarantees associated to the loan, whilst maintaining the total upside potential of the shares in this last period.

Thanks to the structure of this transaction, Sacyr, which maintains voting rights on 8.5% of Repsol, will no longer have to set aside the dividends distributed by the energy company to pay interests and principal exclusively, and will benefit directly from them for the first time.

Since the last refinancing in January 2015, when the loan amounted to 2,264 million euros, Sacyr has, thanks to its risk and debt reduction strategy, reduced this debt down to zero, therefore removing any uncertainty on future refinancing, which is no longer necessary..

The 769 million euros of debt which are eliminated thanks to this transaction accounted for 21% of Sacyr's total net financial debt at December 2016 (3,726 million euros), which now stands below 3,000 million euros

This operation, as well as hedging against the risk of oil price fluctuations and reducing the loan, enables Sacyr to diversify its sources of funding.This coverage brings the strategy to remove the risks associated to its shareholding in Repsol to a close. Sacyr is convinced that hedging the value of this shareholding is the best way to fulfill its strategic plan and enhance the value of a company which is increasingly focused on the concessions sector and on construction, industrial and services businesses.