OHLA ends recapitalization process, reduces debt and extends bond maturity to 2029

Cuatrecasas has advised an ad hoc group of bondholders on the comprehensive recapitalization of Obrascón Huarte Laín, S.A. (“OHLA”), a multinational construction and civil engineering group with headquarters in Spain. 

The recapitalization included various key aspects. It involved a capital increase of a maximum of €150 million, with €70 million contributed by new investors and €80 million subscribed by existing shareholders (including reference shareholders), new investors and OHLA employees. It also involved a partial depreciation of bonds worth €139 million, and the maturity of the remaining bonds has been extended to December 2029, including an amendment of terms and conditions. 

In addition, cash securities worth €100 million linked to multiproduct financing lines and to certain bilateral guarantee lines have been released, and the maturity of the group’s material guarantee lines has been extended for an initial 12 months with the possibility to extend to a maximum of 36 months, subject to compliance with conditions. Lastly, OHLA has managed to repay and cancel the bridge financing of €40 million implemented in May 2023, which was secured by the Spanish State Finance Agency's (“ICO”) guarantee facilities.

This transaction has enabled OHLA to considerably reduce its debt and to extend the repayment schedule, giving it greater financial stability to invest in new projects. OHLA has also made changes in its corporate governance after the initial capital increase. For the shareholders, the transaction has involved a significant partial depreciation of debt, thus guaranteeing greater certainty regarding investment recovery.

The Cuatrecasas multidisciplinary team handling this transaction was made up of lawyers from various of the firm's offices, including Barcelona, Bogotá, Lima, London, Madrid, Mexico, New York and Santiago. The transaction was led by Ignacio Buil, coordinating partner of the firm’s Restructuring Practice, together with lawyers Julia Signes and Fernando Garí (also Restructuring). Other lawyers participating include Patricia Álvarez, Natalia Arango, Roberto Guerrero, Kiomi Osorio, Gizeh Polo, Manuel Quinche, Aldo Reggiardo, José Luis Rodríguez, Federico Espinosa and Ignacio Ínigo.

For this transaction, Cuatrecasas worked with law firm Weil, Gotshal & Manges, as well as with PJT Partners in its capacity as financial advisors.