Spain's Isolux Corsan to refinance and sell T-Solar

According to Spanish newspapers, Spanish engineering and construction group Isolux Corsan expects to close the refinancing of €600 million debt of its solar power subsidiary T-Solar by year-end.

The refinancing will potentially extend the debt for six years with a group of banks, including Santander and BBVA. The transaction would be in line with current sector rules and will facilitate the sale of T-Solar.

The company has photovoltaic power plants with a combined capacity of 326 MW in eight countries. Most of the plants are located in Spain (160 MW) and were affected by the energy reform. T-Solar has also assets in other seven countries including Italy, Peru, USA and India.

Isolux is currently in the process of splitting its infrastructure business, Isolux Infrastructure, with the Canadian pension fund PSP Investments. PSP became a significant investor in the company years before but both companies had different views for the future of the business. After a long process led by KPMG, PSP will own the road concessions developed by Isolux and Isolux Corsan will control T-Solar and 3,842 km of transmission lines in Brazil. Additionally, PSP will give Isolux an economic compensation of US$302,5 million, according to Spanish newspaper El Economista.

Isolux, advised by Santander, expects to pocket €600 million to €700 million from the sale of T-Solar and the transmission assets.

Bruc Capital, the new infrastructure investment vehicle led by Spanish executives Juan Bejar (ex-CEO of FCC and Citi Infrastructure), Eugenio Galdón and Joaquin Coronado, and supported by George Soros; could be among the companies interested in buying T-Solar.  

Corpfin, KKR and MunichRe also hold different stakes in assets owned by T-Solar, what makes the deal even more complex as they could exercize rights to buy the assets if a sale process activates.