RyC advises Colonial on closing a €500m debt issue

Ramón y Cajal Abogados has advised Colonial on a €300 million debt buyback offer and on the simultaneous €500 million bond issue under its €5 billion EMTN programme

Colonial has successfully closed today a debt issuance operation for a total amount of €500 million. The bond issue is structured for 8 years, which will accrue a coupon of 1.35 per cent maturing in October 2028.

The markets have widely supported Colonial’s issuance, to the point that demand has exceeded more than three times the volume of the issue. The issue has been backed by the main international investors with an institutional profile, present in previous issues and who have once again shown their support for the company.

This issue comes after Colonial announced a repurchase offer of up to €300 million for the holders of its debt issues with upcoming maturities in 2023 and 2024, where they have also counted with Ramón y Cajal Abogados advice.

“With this issue, we wanted to take advantage of a window of opportunity to reinforce the capital structure, improve the quality of our financing by further lengthening its terms and reducing its average cost, and we have once again been able to confirm the interest of the markets to follow the model success of our business plan”, explained Pere Viñolas, Colonial’s CEO.

The new issue will be listed on the Spanish market under the “Euro Medium Term Note” program that allows issues of up to €5,000 million and that the company has registered with the National Securities Market Commission (CNMV).

Ramón y Cajal team was led by partner Carlos Lao Garcia (pictured left) and included Capital Markets and Finance associates Lucia Garcia Claveria (pictured top right) and Pablo Tejerizo Solanilla (pictured bottom right).