Shareholders contribute 800 million to Celsa to refinance its debt
Of the total, 200 million is through a capital injection and the remaining 600 million is a subordinated loan.
BarcelonaCelsa's shareholders, the creditor funds that acquired ownership, will contribute €800 million to refinance the steelmaker's debt. The board of directors has approved a two-part operation: a €200 million investment from the shareholders and a €600 million subordinated loan (these are loans that are last in line to be repaid in the event of bankruptcy proceedings). An extraordinary shareholders' meeting has been called for December 4th. These financial transactions will conclude the company's financial reorganization process. This process began with the capitalization resulting from the September 2023 court ruling, which mandated the transfer of ownership from the Rubiralta family to the creditor funds. A further cleanup of the accounts was also carried out at the close of that fiscal year, along with debt reduction through the sale of assets in the Nordic countries and the United Kingdom.
In the middle of last year, Celsa launched a new industrial plan. Initially, it had La Caixa's investment arm, Criteria, as a shareholder, but Criteria ultimately declined, which meant a significant financial burden for the shareholders. Following La Caixa's withdrawal, the company decided against seeking other partners. The plan was financed through a €166 million capital increase by the shareholders.
Favorable Environment
This roadmap has been 60% fulfilled, allowing for "notable increases" in operating profit (EBITDA), according to the company. Celsa expects a more favorable environment for the steel sector next year, with increased demand from the construction sector and the implementation of safeguard measures and tariffs announced by the European Union (EU) for the steel industry, which help improve the industry's economic cycle. The Catalan steelmaker, with Rafael Villaseca as chairman and Jordi Cazorla as CEO, closed 2024—its first full year with creditor funds as shareholders—with losses of €281 million. However, it also reduced its debt by 48%, to €1.793 billion, driven by the sale of its British and Scandinavian subsidiaries, as well as a capital increase.
