The Repsol Group, via its affiliate company, Repsol International Capital Ltd., has issued guaranteed preference shares worth a total $700 million on the U.S. market, the largest offering by a non-U.S. entity for such shares.
The $25/share issue also is the first such issue to be carried out by a Spanish industrial company in the U.S. The shares are guaranteed under subordinated terms by Repsol SA and will be quoted on the New York Stock Exchange.
High demand for the Repsol shares spurred the company to increase the offer from the initial $400 million. These favorable conditions have made it possible to fix a dividend yield of this stock of 7.45%.
This issue strengthens Repsol's financial structure following its large investment outlay during the past 15 months, mainly to consolidate the company's presence in Latin America, where it is active in all its business areas (see related story, p. 19).
The placement of these guaranteed preference shares began Oct. 14 under the registration statement made effective Oct. 10 by the Securities and Exchange Commission.
Rating agencies Moody's and Standard & Poor's have classified the issue as aa3 and AA,respectively, equivalent to the rating held for non-subordinated debt.
Co-managers for this issue were BBV Latinvest Securities Ltd., Goldman Sachs & Co., and Merrill Lynch & Co.
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