This website uses third-party cookies to collect statistical information related to your navigation. If you continue to browse, we consider you accept this use. See more information on our cookies policy here.

Events after the end of the year

13.- Events after the end of the year.

On January 17, 2013, Abengoa, S.A. issued €400 M aggregate principal amount of 6.25% notes due 2019 (the “2019  Convertible Notes”). In summary, the final terms and conditions of the issuance are as follows:

a) The Notes were issued for four hundred million Euros (€400 M) with maturity set at six (6) years.

b) The Notes accrue a fixed annual interest of 6.25% payable semiannually.

c) The Notes are convertible, at the option of noteholders into fully paid class B shares.

d) In the event that investors decide to exercise their right of conversion, the Company may decide to repay the notes in  shares, cash or a combination of cash and shares.

e) The 2019 Convertible Notes are convertible into fully paid class B shares of the Parent Guarantor credited in the  number determined by dividing the aggregate nominal amount of the Notes by the applicable conversion price. The  conversion price is three Euros and twenty-seven cents of a Euro (€3.27) for each share B of the Company.

On January 9, 2013, Abengoa entered into certain stock loan agreements with Inversión Corporativa IC, S.A. for a total  amount of 11,047,468 Class B shares to facilitate stock borrow liquidity to investors in the 2019 convertible notes.

On January 17, 2013, we used €108.8 M out of the proceeds from the issuance of the 2019 Convertible Notes to  repurchase €99.9 M principal amount of our outstanding 2014 Convertible Notes. The remaining proceeds of the 2019 Convertible Notes will be used to repay syndicated bank debt maturing in 2013 and other short-term corporate debt.

On February 5, 2013, Abengoa Finance S.A.U. issued € 250 M ordinary Notes. In summary, the final terms and  conditions of the issuance are as follows:

a) The Notes were issued for two hundred and fifty million Euros (€250 M) with maturity set at five (5) years.

b) The Notes accrue an annual interest of 8.875% payable semiannually.

c) The notes are guaranteed jointly by certain subsidiaries of the Group.

Finally, on February 2, 2013, Royal Decree 2/2013 of February 1 on urgent measures related to the electric system and financial sector has been published and ratified by Spanish General Courts on February 14. Among other measures, this Royal Decree establishes an amendment starting in 2013 on the mechanism to update tariffs and premiums received by electricity suppliers in application of its sector regulation and several amendments to Royal Decree 661/2007, of May  25, that regulates electricity production activity under the special regime and under the regime derived from the latter.  These measures have meant a significant modification in the regulatory framework applicable to the electricity generation with thermo-solar technology in Spain.

Given that the afore-mentioned measures have been approved and made public after the date of these consolidated  financial statements and will be effective in 2013, they correspond to a circumstance occurred in the period 2013 and do not correspond to an evidence or confirmation of conditions that existed prior to the closing of the reporting period 2012. In consequence, under IAS 10 on “Events after the reporting period”, its potential impacts should be considered after the closing of the reporting period 2012. In accordance with the analysis performed by the Company on the potential  impacts that these measures could have, considering all the evidence available at the date of issuance of these  consolidated financial statements, Management has concluded that the analysis carried out do not indicate an  impairment in the carrying amount of assets related to thermo-solar electricity generation activity in Spain. As a result, the Company does not expect to have impairment losses nor any default in the financial obligations related to these  projects as a consequence of the measures established in Royal Decree 2/2013.