* Capital raising will boost cashflow, fund expansion
* More than 80 pct of orders are overseas
* New shares offered at a 2.9 pct discount to Wed close
(Adds details, background)
MADRID, April 24 Spanish builder Sacyr
said on Thursday it would raise 416 million euros ($575 million)
through the issue of convertible bonds and new shares to boost
cashflow and fund international expansion.
More than 80 percent of the builder's order book was
overseas at the end of 2013.
The debt-laden builder's shares have more than tripled over
the past year as investors returned to assets most severely
punished by Spain's economic downturn, such as real estate and
construction company stocks, as the country emerges from
Analysts had said Sacyr could take advantage of the rise in
its stock value to increase its capital. The company, which has
poured resources into building projects abroad as public
spending dried up in austerity-stricken Spain, announced the
deal late on Wednesday.
On Thursday it said it had raised 166 million euros through
the issue of new shares priced at 4.58 euros each, a 2.9 percent
discount to Wednesday's closing price of 4.719 euros. The new
shares represent 7.2 percent of the company's share capital
following the operation.
Sacyr shares were down 1.65 percent at 4.6 euros on
Thursday. Along with other builders such as FCC and ACS
, Sacyr's share price plunged after Spain's 2008
property crash and have still lost around 90 percent of their
value from a December 2006 peak.
"We think that any weakness in the share price should be
taken as an opportunity to buy," said Juan Carlos Calvo of
broker Espirito Santo. The capital raising was positive and
pointed to a strong project pipeline and the discount was lower
than expected, he said.
Separately, Sacyr said it would issue 250 million euros in
five-year convertible bonds with a coupon of 4 percent and a
conversion price of 5.725 euros per share, a premium of 25
percent on the share price following the capital hike.
This was at the lower end of their target range of 250
million to 300 million euros announced on Wednesday and at the
higher end of the interest range of 3.25 to 4 percent.
($1 = 0.7231 euros)
(Reporting by Sonya Dowsett and Tracy Rucinski; Editing by