Vitro Refinances Bank Debt of Spanish Subsidiary
September 14, 2010
Vitro Cristalglass S.L. (Cristalglass), the Spanish subsidiary of Vitro, has reached an agreement to refinance most of its debt (the agreement) with its major banking institutions, allowing it to continue its business plan for the next three years.
The agreement was signed in Ponferrada on June 30, 2010, with eight financial institutions: Caja Madrid, Banco Popular, Castilla, Caixa Galicia, Caixanova, Bancaja, Caja Spain, Caja Duero and Banco Sabadell. The amount of the agreement is €44.8 MM (approximately $58.2 million), which represents 97 percent of the outstanding bank debt of the company.
According to the announcement, by reaching this agreement, Cristalglass is now positioned for sustainability and financial stability according to its business plan, which includes leadership in special construction projects and the diversification of its products and markets.
"This refinancing agreement significantly reduces the need by the parent company to provide long-term capital resources and allows it to continue supporting the subsidiary, as usual, with cash used to finance its working capital," said Claudio Del Valle, chief administrative and financial officer of Vitro.
"This agreement reflects the confidence of the country's major financial institutions in the future performance of Cristalglass," said José Cubillo, chief executive officer of Cristalglass.
The refinancing was achieved with the support of Equipo Económico - Madrid, which coordinated the negotiation of the agreement.
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