September 29, 2015 / 8:32 AM / 4 years ago

Abengoa refinances Elliott project loan

LONDON, Sept 29 (IFR) - Abengoa has raised a new project bond to refinance a bridge loan from US hedge fund Elliott Management taken out two years ago to fund its Solaben 1 and 6 solar projects.

A special purpose vehicle called Solaben Luxembourg priced a 285m 3.758% December 2034 amortising bond on Friday via Santander, Citigroup and Credit Agricole. Standard & Poor’s rates the bond BBB.

The bond is yet to settle but Abengoa has repaid Elliott, according to a source.

The project bond suggests the company’s recently announced underwriting commitments for its equity capital raise have eased pressure on its ability to raise non-recourse financing against its assets.

Abengoa is selling Solaben 1 and 6 to its US-listed yieldco Abengoa Yield.

IFR reported on Friday that Abengoa was seeking to refinance the Elliott loan, which some investors thought could be problematic given that the Spanish energy firm’s corporate bonds continue to trade at deeply distressed levels.

Abengoa’s 375m 7% 2020 bond slumped to a cash price of 37.50 on Tuesday morning, equating to a yield of 39%. The bond traded as high as 58 after the company announced details of its rights issue last Thursday. (Reporting by Robert Smith, editing by Alex Chambers, Julian Baker)

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