Repsol plans to swap preferred shares for cash and bonds
BY ILAN BRAT
MADRID -- Repsol said its board could approve a plan to buy back its preferred shares for a mixture of cash and bonds.
The proposal, subject to approval at a board meeting scheduled would convert about $3.88 billion of preferred shares, with a nominal value of $1303 each, into $619 in cash and 10 year bonds worth $651 paying a 3.5% annual interest rate, the company said.
The plan would help Repsol decrease its debt load as it seeks to bolster its financial profile. It was hard hit in early May 2012 by Argentina's nationalization of 51% of the oil company's controlling stake in YPF, the country's leading oil and gas firm.
As part of this strategy, in the last year Repsol has agreed to sell most of its LNG business, divested other assets and lowered its dividend payout.
Dow Jones Newswires