Mota-Engil in €75 million share issue
The Portuguese construction giant Mota-Engil is to issue fresh bonds for small investors.
The company will issue €74 million of bonds with a 2024 maturity, offering a gross interest rate of 4.375%. At the same time, the company will press ahead with two securities operations involving preexisting bonds repackaged and retailed with a maturity extension.
Mota Engil did particularly well overseas during the economic crisis which hit Portugal’s home construction industry hard. In 2012 it made €40 million in profits, in 2013, €50 million, comparable amounts in 2014 and 2016, but dipped down to around €2 million profit in 2015 climbing back to just under €25 million profit in 2018.
Subscription for the securities will begin on Monday 14 October and will run for two weeks until 25 October 2019. The minimum investment will be €1,500 which corresponds to three securities (each with a nominal value of €500 each). The results of the take-up will be posted on 28 October and the Mota-Engil Bonds will be listed on Euronext Lisbon two days later.
In addition to new debt, investors who have bonds which mature in 2020 and 2021 can exchange them for a later maturity date. “Pubic exchange offers will enable Mota-Engil to replace part of its debt with a maturity in 2020 or 2020 with bonds with capital payouts in 2023 and 2024”, states the prospect.
To encourage the exchange, the construction giant will offer a bonus to investors. Each Mota-Engil Bond 2020 extended to 2024 will correspond as an offset bonus worth €5.05.
In the case of bonds that mature in two years, each Mota-Engil 2021 will correspond to 20 Mota-Engil 2024 bonds and a bonus of €169.
With these operations “Mota-Engil aims to obtain funds to finance its current and future international expansion plans, as well as extending the maturity of its debt so as to better align it with its cash-flow requirements”, states the prospectus.
The operations will be conducted by Banco Finantia, CaixaBI, Haitong Bank and Novo Banco.