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UPDATE 1-Spain's OHL further shrinks Abertis stake to pay down debt
October 3, 2016 / 10:16 PM / a year ago

UPDATE 1-Spain's OHL further shrinks Abertis stake to pay down debt

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Oct 3 (Reuters) - Spanish builder OHL on Monday sold down another chunk of its stake in Abertis, leaving it with 2.5 percent of the infrastructure firm as it raises cash to pay down debt.

The company said it was relinquishing its seat on Abertis’ board as a result. OHL had already whittled down its Abertis stake in June, halving it to 7 percent.

OHL, whose borrowings stood at more than 3.5 billion euros ($3.92 billion) at the end of June, said in a statement it had priced the share placement - equivalent to 4.425 percent in Abertis - at 13.65 euros per share, raising just under 600 million euros.

The sale price was slightly below the 13.79 euros Abertis shares closed at on Monday.

OHL said it would use the latest accelerated share sale to repay a 266 million euro loan secured against Abertis shares and pay down 273 million euros more in gross debt.

The building firm said it would retain the remaining 2.5 percent in Abertis until 2018.

UBS was the global coordinator of the sale while Merrill Lynch and JP Morgan were also bookrunners. ($1 = 0.8918 euros) (Reporting by Nadiia Karpina in Gdynia and Sarah White in Madrid, Editing by Grant McCool)

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