ICA Announces the Signing of a US$215 Million Secured Convertible Loan with Fintech
17 June 2016 - 2:12PM
Empresas ICA, S.A.B. de C.V. (BMV:ICA)
(NYSE:ICA) announced today that it signed a secured
convertible loan agreement for a total principal amount of US$215
million and a three-year term of maturity, through its subsidiaries
Controladora de Operaciones de Infraestructura, S.A. de C.V.
(“CONOISA”) and ICA Promoción e Infraestructura, S.A.P.I. (“ICAPI”,
and together with CONOISA, the “Borrowers”), with Fintech Europe
S.A.RL. (“Fintech”), as lender, and ICA acting as guarantor.
The loan may be disbursed in two tranches of US$54 million and
US$161 million subject to the satisfaction of certain conditions
precedent. The net proceeds of the loan to ICA (after
deducting fees and commissions) are expected to be approximately
US$50.2 million and US$149.7 million, respectively, for each
tranche.
The loan bears PIK interest at a rate of 16%,
accruing and capitalizing monthly. The loan will be secured by
pledges of ICA’s shares of its subsidiaries, Servicios de
Tecnología Aeroportuaria, S.A. de C.V. (“SETA”), holder of control
shares of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.;
Desarrollo, Diseño, Infraestructura y Operación, S.A.P.I. de C.V.
(“DDIO”), holder of prison infrastructure projects; Covimsa, S.A.
de C.V. (“Covimsa”), holder of the Apaseo – Palmillas concession,
as well as shares of other entities within ICA’s engineering and
construction segment and a pledge of 100% of the shares of ICAPI
and CONOISA, the holding company for all of ICA’s
concessions. The loan is convertible, at the option of
Fintech, into up to 32.02% of the shares of CONOISA and of ICAPI,
or is payable in kind into up to 53.45% of the shares of Covimsa
owned by CONOISA, 53.45% of the shares of SETA owned by CONOISA,
49.9% of the shares of DDIO owned by CONOISA, as well as shares of
other entities within ICA’s engineering and construction segment,
subject to certain conditions precedent.
The proceeds will be used to fund working
capital and other investments required for the company to
participate in new construction and future infrastructure
projects.
This press release contains projections or other
forward-looking statements related to ICA that reflect ICA’s
current expectations or beliefs concerning future events.
Forward-looking statements involve inherent risks and
uncertainties. We caution you that a number of important factors
could cause actual results to differ materially from the plans,
objectives, expectations, estimates and intentions expressed in
such forward-looking statements. These factors include
cancellations of significant construction projects included in
backlog, material changes in the performance or terms of our
concessions, additional costs incurred in projects under
construction, failure to comply with covenants contained in our
debt agreements, developments in legal proceedings, unanticipated
increases in financing and other costs or the inability to obtain
additional debt or equity financing on attractive terms, changes to
our liquidity, economic and political conditions and government
policies in Mexico or elsewhere, changes in capital markets in
general that may affect policies or attitudes towards lending to
Mexico or Mexican companies, changes in inflation rates, exchange
rates, regulatory developments, customer demand, competition and
tax and other laws affecting ICA’s businesses and other factors set
forth in ICA’s most recent filing on Form 20-F and in any filing or
submission ICA has made with the SEC subsequent to its most recent
filing on Form 20-F. All forward-looking statements are based on
information available to ICA on the date hereof, and ICA assumes no
obligation to update such statements.
Empresas ICA, S.A.B. de C.V., carries
out large-scale civil and industrial construction projects and
operates a portfolio of long-term assets, including airports, toll
roads, water systems, and real estate. Founded in 1947, ICA is
listed on the Mexican and New York Stock exchanges.
For more information, visit http://ir.ica.mx/.
For more information, contact:
Christianne Ibánez
christianne.ibanez@ica.mx
relacion.inversionistas@ica.mx
+(5255) 5272 9991 x 3607
Pablo García
pablo.garcia@ica.mx
Chief Financial Officer
In the US:
Daniel Wilson, Zemi Communications
+(1212) 689 9560
dbmwilson@zemi.com