(Bloomberg) — Munich-based BayWa AG has raised €547 million ($602 million) in additional liquidity from its shareholders and lender banks, giving the cash-strapped German commodities trader more time to organize a broader restructuring.
The firm’s main lender banks agreed to a standstill on pre-existing financing and a core group provided a bridging loan of €272 million, according to a statement from BayWa Thursday. The loan is initially valid until Sept. 30, with the possibility of extending until Dec. 31.
BayWa’s main shareholders — cooperatives Bayerische Raiffeisen Beteiligungs-AG and Raiffeisen Agrar Invest — have provided €125 million to date in subordinated shareholder loans. Shareholders and other parties have also agreed to purchase certain assets, generating additional funds for BayWa.
The company has been in negotiations with stakeholders to try to restructure its sprawling business, which ranges from renewable energy to agricultural trading and construction. With debts of more than €5 billion, the company has been hit by a rise in financing costs as well as volatility in markets such as solar.
BayWa in Talks for €500 Million Rescue From Lenders, Investors
Baywa’s €100 million hybrid bond was indicated at 4 cents on the euro higher at 51.8 cents as of 12:03 p.m. London time, according to data compiled by Bloomberg.
The financing package comes after months of BayWa facing roadblocks in its efforts to raise funds. The sale of its Solar Trade unit was delayed due to pressures in the industry, and the company decided to pull the planned sale of a €250 million bond in April after it was met with lacklustre appetite.
BayWa’s management board said it assumes all outstanding financing will be obtained by the company in the “next few days.” It expects that a sustainable restructuring proposal, including a new financing arrangement, can be reached by Sept. 30.
(Updates to add bond pricing in paragraph five, background in paragraph six.)
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