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© Reuters. Armas Trasmediterránea reduces its debt by 48% and remains in the hands of the bondholders
Las Palmas de Gran Canaria, Apr 14 (.).- The shipping group Armas Trasmediterránea will reduce its debt by almost half, from 538 to 278 million euros, thanks to an operation approved by the holding entities of its bonds, which are converted in the new majority shareholders of the company, with 94% of the capital, while the remaining 6% remains in the hands of the Armas family, its founder.
In a statement released from Madrid, Armas Transmediterranea stresses that this agreement, “backed by all its creditors and shareholders”, represents for the group “a decisive step in implementing the necessary strategy to boost its business and future growth, leaving behind a period of difficulties aggravated by circumstantial factors such as the rise in fuel or the closure of routes in the Strait” of Gibraltar.
The bulk of the debt reduction comes from the capitalization of the bonds issued by the shipping company, which totaled 445.9 million euros and which after this operation will represent 178.4 million.
“The terms reached in the framework agreement incorporate the commitment of the new majority shareholders, with 94% of the capital, to provide financing for an amount of up to 73.3 million euros to cover any liquidity needs of the group while it is running. the agreed recapitalization process has been carried out”, details the statement issued by Armas Trasmediterránea.
After this operation, he adds, the company’s shareholders “will be made up mainly of investment vehicles advised by JP Morgan (NYSE:), Barings, Cheney Capital, Bain Capital and Tresidor, as main creditors, and by the Armas family, which will remain in the shareholders”.
The shipping company has appointed a new board of directors, headed by Sergio Vélez as CEO, from the firm FTI Consulting and considered “one of the most reputable specialists in Spain in restructuring and operational optimization of companies”, with more than 25 years of experience in similar situations in companies such as Natra (BME:), Grupo Gallardo Balboa, Dia (BME:) or Grupo Siro.
In turn, Marc Canalda, until now interim general director, has been appointed financial director; Óscar Martínez will be the commercial manager, and Francisco Chico, the Director of Purchasing and Insurance.
Armas Trasmediterránea highlights that “Óscar Martínez has more than 25 years of experience in positions of maximum commercial responsibility in companies in the logistics and maritime sector, such as Bergé, CEVA Logistics or UTI (today DSV (CSE:))” and that Francisco Chico owns more than 20 years of professional background “in the purchasing sector in multinational environments, the last seven in the beer sector working for SAB Miller and AB InBev (EBR:)”.
The transformation plan of the company, leader of the sector in Spain in passenger transport and rolled cargo, revolves around axes such as the improvement of solvency and rating as a result of the recapitalization, the improvement of the service and availability for the client and the consolidation of the leadership position before the competitors mainly in the Canary Islands and the routes between the peninsula and the Canary Islands
It also includes the optimization and renewal of the fleet on routes in the Canary Islands, the Strait and land transport in the Canary Islands, the Balearic Islands and the Strait (its subsidiary Hermes (EPA:)) and the improvement of operations through increased efficiency. taking advantage of the synergies of the two fleets of the group: Trasmediterránea and Naviera Armas
“All the aforementioned measures place the group in a position to achieve an operating result of approximately 52 million euros by 2023 and raise service standards in an essential activity such as passenger and cargo transportation,” says the shipping company.
Armas Trasmediterránea transports more than three million passengers a year, has a fleet of 24 ships that connect ports in three countries and operates 24 passenger and cargo routes on the Canary Islands, Canary-peninsula and Strait of Gibraltar routes.
It also owns the main inter-island land transport operator in the Canary Islands and the Balearic Islands, with more than 500 trailers.
