UPDATE 1-Spain's Sacyr to sell convertible bonds, shares

Wed Apr 23, 2014 1:22pm EDT

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MADRID, April 23 (Reuters) - Spanish builder Sacyr said on Wednesday it would issue up to 300 million euros ($415 million) of convertible bonds and sell new shares equivalent to 7.8 percent of existing capital to increase liquidity and fund international expansion.

Indebted Sacyr has seen its share price more than triple over the past year, compared with a 26 percent increase in the Spanish blue-chip index, and analysts had said the company could take advantage of this via a capital increase.

The builder's shares fell sharply following Spain's 2008 property crash and have lost around 90 percent of their value from a December 2006 peak. Investors are returning to Spanish assets that they consider have hit rock-bottom, like real estate and building stocks, as the country emerges from recession.

The five-year convertible bonds will pay a coupon of between 3.25 and 4.00 percent. The conversion will be fixed at a premium of between 25 and 30 percent to the current share price. Sacyr's shares closed at 4.719 euros on Wednesday.

The deal, aimed at institutional investors, will be priced on Thursday morning, the company said.

Separately, the capital hike, which will also price on Thursday, will involve a maximum of 36.3 million shares equivalent to around 171 million euros at Wednesday's closing price.

Santander and Societe Generale will act as bookrunners for the convertible bond deal, Sacyr said, while JB Capital Markets and Fidentiis Equities will act as bookrunners for the capital hike. ($1 = 0.7231 Euros) (Reporting by Sonya Dowsett; Editing by Erica Billingham)

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