Waterfalls would reduce debt by $ 300 million after SQM Dividend distribution
Oro Blanco already prepaid a bond for $ 100 million, same figure Potasios paid to BCI.
Through an essential fact sent last Friday, SQM said that the directory decided to approve an eventual dividend of $ 230 million, charged to retained earnings of the company.
If approved by the SQM Extraordinary Shareholders- scheduled for July 7-Pampa Calichera could receive about $ 70 million, resources as indicated by sources familiar with the matter, would be used to reduce the level of debt of Cascada societies.-
The same sources indicate that although it is not yet defined which credits will be prepaid, three elements are analyzed: cost of prepayment, interest rate, and maturity.
Financial Movements
The resources that Pampa could receive, is just one of the latest financial movements that companies have made in recent months.
As of March this year, the non-current liabilities reach U.S. $ 1,036 million, up from U.S. $ 974 million in the same month of 2013.
Last week, the Oro Blanco Extraordinary Shareholders approved a new capital increase of U.S. $ 18 million, so that Norte Grande (a process that made $ 92 million) subscribes to the remaining resources to complete the U.S. $ 120 million to the first company required, and that could not be completed by an effect on the exchange rate.
To these moves, adds that in June 4th, the company reported pre-paid the international bond for U.S. $ 100 million, with the resources committed to the capital increase.
Meanwhile, Potasios reported in late May that it agreed to pay the capital and interest due on the loan agreement with Banco Crédito e Inversiones (BCI) for another U.S. $ 100 million.
However, these resources out of the Pampa box, which alienated in the middle of 2013 SQM-B shares for about U.S. $ 200 million. The resources were delivered in credit at a higher rate than it received to keep on hand, leaving the door open for new loans between companies.
If realized as proposed by SQM, waterfalls could reduce its liabilities by about $ 300 million.
SQM
The last shareholders meeting approved the delivery of a dividend of just over U.S. $ 200 million, however the Board was to examine the possibility of distributing 100% of the profits for the year 2013 that exceeded $ 400 million , something that Ponce said would be considered.-
The funds will be delivered under the $ 800 million SQM has as retained earnings.
In this regard, S & P said in a statement that “the proposed payment would not affect our current assessments of the financial risk profile of the company as ‘intermediate’ and its liquidity as” strong “, since SQM benefits from its substantial position cash. “
The agency said that “our expectation remains that rates funds from operations to debt of SQM will be in the range of 40% -65% in 2014 and 2015, while its ratio of debt to EBITDA to fall below 2 times (x). Although the company currently estimates that it will present a negative discretionary cash flow in 2014, its liquidity remains strong”.
In 2014 and 2015, the aggregate investment spending plans of the company added only $ 300 million, as already completed investments in expansion over the past two years.-
Source: Diario Financiero
