The Euskaltel Group receives unanimous backing from banks to refinance debt
Bilbao, 1 March 2019. The Euskaltel Group has received unanimous backing from financial institutions to go ahead with its strategic plan and assure the Company's future growth. The operator has improved the terms of external debt financing to reach an average cost of 2.58%, as well as extending the average life to 2024.
The Euskaltel Group's refinancing operation has a dual objective to cut finance costs and lengthen the average loan term by modifying future repayments.
This strategy forms part of the adaptation of the Company's Financial Plan to its Business Plan (2019-2022) and is designed to enhance efficiencies to a maximum, assuring the stability and feasibility of the investments envisaged in its growth plan.
The operation reflects the trust placed by banks in the Euskaltel Group's robustness, since negotiations ended with the unanimous agreement of all the institutions in a record time of less than two weeks.
In view of these renewed conditions, the external funding structure has shifted from 100% bank borrowings three years ago to 34% bank tranches and 66% institutional investors, reflecting a more liquid, flexible structure. The Group's total debt is now backed by 60 entities.
This agreement confirms support for a management model that applies business principles through operational excellence and an unbeatable ebitda margin and cash flow generation as the main financial indicators, endorsed by a long-term industry vision and a consolidated leading position in the Group's markets.
Thanks to these new financing terms, the Euskaltel Group is making steady progress in its geographic expansion plan, focusing on five new markets this year: Navarre, Cantabria, León, La Rioja and Catalonia.
Euskaltel - Communication
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comunicacion@euskaltel.com