Innovative solution of BBVA to reinforce Cementos Portland capital structureAugust 1, 2012
BBVA Corporate Finance has advised Cementos Portland Valderrivas in a Capital Raising in which a financial investor (The Blackstone Group), has invested USD 430 Mn in Giant Cement Holding's capital structure, reinforcing Cementos Portland's capital structure .
BBVA Corporate Finance is pleased to announce that it has advised Cementos Portland Valderrivas, largest Spanish cement producer, in the construction of an innovative solution to reinforce its capital structure in order to ensure the refinancing of the Group.
The deal consisted in the issue of a hybrid instrument by its North American subsidiary Giant Cement Holding, specialized in building materials and waste processing in the East Coast of the US, for a consideration of USD 430 Mn. This instrument has been fully subscribed by a third party investor, The Blackstone Group.
BBVA has acted as Financial Advisor in this cross border transaction, which has been successfully executed by BBVA's Corporate Finance Team:
- The deal represents a significant milestone for Cementos Portland, reinforcing its capital structure under the current economic downturn.
- Landmark and innovative transaction in Spain, which allows Cementos Portland to monetise value of an international subsidiary without losing neither control nor its diversification profile.
- Unique and creative solution via a hybrid instrument (fixed income and equity upside characteristics), enhancing financial flexibility of Giant Cement and Cementos Portland as well as supporting the refinancing of the Group.
- Transaction structured as a flexible process in which several potential alternatives were analysed, selecting the most suitable option for Cementos Portland.
- Careful selection of financial investors by BBVA based on their previous experience providing out-of-the-box solutions.
- BBVA Corporate Finance shows once again its excellent cross-border advising capabilities.
- Furthermore, BBVA CF has turned into a preferred advisor to FCC Group (Parent company of CPV) being the aforementioned the forth transaction since 2010 in which BBVA CF has assisted the Group in fulfilling its goals, after advising it in the disposal of Torre Picasso to Pontegadea in 2012, the sale and leaseback of FCC's Headquarters to a private investor in 2011 and the disposal of its Vehicle Inspection Business to SGS in 2010.
The aforementioned deal is the 12th transaction announced by BBVA CF EMEA since 2009 advising companies in the Construction & Infrastructure Industry:
- Cementos Portland Valderrivas: financial advisor in finding a financial investor (The Blackstone Group), to invest USD 430 Mn in Giant Cement's capital structure, subsidiary of Cementos Portland.
- OHL: financial advisor in the disposal of OHL Inima to GS Engineering & Construction.
- FCC: Financial Advisor in the disposal of Torre Picasso to Pontegadea Inversiones (Amancio Ortega).
- FCC: Financial Advisor in the Sale & Leaseback of FCC's Headquarters to a private investor.
- Grupo Ortiz: Sole financial advisor in the acquisition of Santa María de Nieva 50 MW wind farm.
- Acciona: financial advisor in the sale of the leisure and Shopping centre Splau! to Unnibail-Rodamco.
- Abertis: Fairness Opinion provider to Abertis´ Board of Directors in the spin-off of Saba Infraestructuras, its car park and logistic parks operator subsidiary.
- Canal de Isabel II: sole financial advisor in the sale of a 10% stake in the largest water integrated operator to Madrid's city council.
- Acciona: sole financial advisor in the 50% disposal of Chilean highways Vespucio Sur and Litoral Central to Atlantia.
- FCC: financial advisor in the sale of FCC´s Vehicle inspection business to SGS.
- Ferrovial: sole financial advisor in the merger by absorption of Ferrovial and Cintra.
- Cintra Aparcamientos: financial advisor in the disposal of Cintra's subsidiary parking operator to Emparque.
BBVA CF reinforces its leadership in the Spanish market. Since 2009, BBVA CF has participated in more than 49 transactions advising leading Spanish companies: CPV, Acciona, FCC, Abertis and Ferrovial in Construction & Infrastructure, Enel, Iberdrola, Cepsa and Endesa in Energy, Grifols in Hemoderivatives, Diego Zamora and Grupo Osborne in Beverages, Nutrexpa in the Food sector and Mapfre in Insurance industry, among others.