Prodiel refinancing coverage from Reorg's EMEA Middle Market
Prodiel Energy Espana SL FY’20 Financial Report (in Spanish)
Proyectos de Instalaciones Eléctricas FY’20 Financial Report (in Spanish)
Spanish renewable energy semiconductor manufacturer Prodiel is working with Lazard to find an industrial partner willing to inject new money into the inflation-hit business. The process is expected to conclude before the end of 2022, sources told Reorg.
Prodiel is seeking to divest a stake in the company but the size is still undecided, sources said. In February, former CEO Miguel Somé told Spanish local newspaper Diario de Sevilla
that it would be a large minority or a majority stake of between 49% and 51% for about €300 million.
The family-owned business has been hit by raw materials price increases, particularly by the jump in steel prices and the lag in passing them through, as well as by supply chain disruptions. As of June 30, 2021, the company had a €2.4 billion backlog of signed projects for the construction of solar photovoltaic parks.
Sources said that many of the company’s projects have been delayed, which has reduced the company’s profits as those projects get mainly paid at conclusion and its timeline has been affected by the current supply chain disruptions. Prodiel reduced its staff by 8% in January, according to press reports
The company is negotiating a refinancing of its existing debt with its creditors, which amounts to about €125 million, sources said. An agreement with its lenders is expected to be reached in the next two to three months. The company’s lenders include Spanish banks BBVA, Santander, CaixaBank, Sabadell, Bankinter, Ibercaja, Novobanco and Aresbank, sources confirmed to Reorg.
As of Dec. 31, 2020, Prodiel’s ultimate parent company, Proyectos de Instalaciones Eléctricas, had €54.9 million in non-current debt and €37.2 million in current debt, according to its latest financial report. In June 2020, Prodiel’s ultimate parent company had secured a €57.4 million financing from banks led by BBVA to increase its liquidity.
In 2019, Proyectos de Instalaciones Eléctricas, had secured a €150 million syndicated financing, which included factoring lines and an RCF, with the option to extend the amount to €179 million from various financial institutions led by BBVA, it said in the accounts.
In 2020, the group reported a 6.6% decrease in its revenue to €580 million, while EBITDA stood at €20 million, according to its website
On April 12, the company signed an agreement with Swiss investor Smartenergy Invest AG to set up a joint venture called Greenfield PV to develop over four gigawatts of solar photovoltaic solar projects in Spain, according to press reports
. The agreement was reached after Prodiel had sold its 50% stake in DVP Solar, its joint venture
with Spanish investment management Everwood Capital, in January, according to press reports
at the time.
Prodiel was founded in 1994 and is headquartered in Seville, Spain. The company has 900 employees and 3,000 subcontracted workers. It has subsidiaries in Chile, Colombia, Peru, Brazil, Mexico, Panama, Morocco, Kuwait, Guatemala and Argentina.
Prodiel declined to comment. Lazard did not respond to Reorg’s requests for comment at the time of the publication.
-- Lucía Camblor