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Carlos Slim target FCC buys back debt at discount: -source

Published 04/22/2016, 04:04 AM
Updated 04/22/2016, 04:10 AM
© Reuters. Slim speaks during a meeting in Managua
FCC
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MADRID (Reuters) - Spanish construction group FCC (MC:FCC) has reached a deal with creditor banks to buy back close to 400 million euros ($451 million) of debt at a discount, a source familiar with the matter said on Friday.

FCC, which is partly owned by Mexican tycoon Carlos Slim, has been dealing with high debts for several years following a 2008 property market crash in Spain which sent thousands of developers to the wall and brought the firm close to bankruptcy.

Slim, who earlier this month launched a full takeover bid for FCC, has pushed for a drastic debt-reduction plan since he first invested in the group two years ago.

The source said FCC had agreed with a dozen banks to repurchase between 380 million and 390 million euros of high interest bearing debt at a discount of more than 15 percent.

The debt carried an interest rate of around 5 percent and was seen as one of the last obstacles to complete FCC's financial turnaround.

© Reuters. Slim speaks during a meeting in Managua

FCC declined to comment on the move, which had first been reported by Spanish business newspaper Cinco Dias.

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