ULMA Group signs a €314m loan contract to consolidate its strategic growth commitment

The ULMA Group has signed a €314m loan agreement with a syndicate of lenders that will provide it with sufficient financial muscle over the next few years to be able to further boost its Strategic Plan and make new investments, embark on new projects and underpin its international expansion.

The operation is a significant support for the ULMA Group, which has successfully responded to the period of upheaval brought about by the international crisis, which has hit the construction sector in Spain particularly hard. ULMA has recovered its pre-crisis business levels and substantially reduced its debt, with net financial debt/EBITDA at 1.58 as of 31/12/2014.

The agreement is for a €150m loan with a six-year payment term and a suite of working capital credit lines worth €164m for two years. This makes a total of €314m that will be used to boost the ULMA Group’s strategic commitment and for future projection. Advised by N+1, the contract was recently subscribed with a syndicate of lenders consisting of the entities Santander, BBVA, Popular, Sabadell, Caixabank, Laboral Kutxa, Bankinter and Caja Rural de Navarra.

The ULMA Group has taken advantage of the current situation to cancel €91m of debt from a loan expiring in 2017 and obtain a significant improvement in financial conditions, which will enable major savings on financial charges over the next few years.

“The commitment and involvement of everyone at the ULMA Group has been vital in cementing our current favourable position. This transaction has been made possible thanks to our rigour, high standards and over the past few years, and it puts us in a secure position for taking on new projects, developing new activities and supporting sound, sustainable medium-term growth”, affirms the ULMA Group’s Managing Director, Iñaki Gabilondo.