Abengoa chairman to step down as company readies share sale
Embattled Spanish renewable energies outfit Abengoa’s chairman, Felipe Benjumea, announced he would be stepping down after 25 years at the helm as the company revealed plans to go cap in hand to investors.
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The Seville, Spain-based company was looking to raise at least €650m in emergency capital to stay afloat.
HSBC, Banco Santander and Credit Agricole would underwrite the sale of 465m Class B shares, the firm said in a statement.
Abengoa, one of the world’s pioneers in the field of thermo solar energy, set itself the target of paying back €375m of bonds falling due in 2016 this year.
The announcement followed the company’s decision in July to slash its guidance for its full-year 2015 free cash flow.
Capital investment is also to be capped at €50m a year until its debt targets are met. The company’s stake in New York-listed Abengoa Yield will also be pared back.
However, Benjumea was to stay on as honorary chairman, the company added.
Credit default swaps on Abengoa’s five-year debt were attaching a 76% probability to a default scenario, down from 88% on Wednesday, according to data from CMA.
As of 12:23 stock in the company was changing hands 3.08% higher on the day at €1.015.