(Reuters) - A portfolio of banks and hedge funds have restructured a Spanish property deal ahead of its initial public offering, The Times reported on Monday, citing commercial property newsletter EuroProperty.
The deal, worth 2.2 billion euros (1.74 billion pounds) and brokered by Sun Capital Partners, has been restructured by banks and international hedge funds such as including BNP Paribas, La Caixa and Santander, the newspaper said.
The consortium has agreed to swap 400 million euros of junior debt for a majority equity stake in a portfolio of about 1,150 Santander bank branches across Spain, according to The Times. (thetim.es/1vBBTcc)
The Times quoted sources as saying that after the consensual debt-for-equity swap, Sun Capital’s interest in the portfolio would be diluted, but the restructuring was needed to stabilise the portfolio’s capital structure in advance of plans to float it.
The restructuring of the debt is expected to be confirmed as early as next week, the newspaper said.
Reporting by Aashika Jain in Bangalore; Editing by Sandra Maler