5 December 2016 – Expansión
Ballesol, a subsidiary of Santalucía, has refinanced the mortgage loan, amounting to €70 million, that Santander granted to finance the purchase of several properties, mainly housing nursing homes.
Ballesol has renegotiated its credit terms with modifications to the repayment period and the interest rate, amongst others.
The new loan was formalised after last year’s financial statements were closed and it was revealed that Ballesol, which specialises in nursing homes for elderly residents, did not comply with the gearing ratio specified within the loan guarantee. As a result, Santander granted a special dispensation to the subsidiary of Santalucía regarding its compliance with this indicator and established a less demanding level so that Ballesol could comply.
Following the refinancing, the maturity period of the loan has been extended by four years until February 2026, with an outstanding amount of €42.5 million.
In its accounts, Ballesol includes several loans granted by Santander, amounting to €73.4 million in total. It also has contracted interest rate swaps with the bank with a (nominal) value of €46 million.
Ballesol received a loan from Popular for €2.5 million, due to mature in 2019, to launch Lisman Mex in Mexico, after it reached an agreement with the Mexican firm Liber.
Ballesol has other loans too: with Popular, amounting to €16.5 million; as well as €5 million loan from BBVA; and €1.15 million from Sabadell. Its total debt amounts to €98.42 million, of which €54 million is long term and €9.6 million is short term, according to its own figures at the end of last year.
Ballesol reported negative working capital of €25.4 million at the end of 2015, compared with a positive balance of €17.8 million in 2014. “These figures may be indicative of a certain degree of uncertainty regarding the continuity of its operations, although that is being mitigated by the support that it is continuing to receive from Santalucía”, which owns 70% of the entity.
Santalucía, which specialises in life assurance, has several fines outstanding with the Tax Authorities. The entity follows “criteria of good governance and prudence in terms of its management. Furthermore, in order to offer the maximum legal security to its clients, it always recognises provisions for the maximum amounts claimed by the Tax Authorities”.
The insurance company has recognised provisions amounting to €80.8 million to cover the claim, which it has charged against other reserves. According to the Tax Authorities, the amount, which is still pending settlement, has arisen due to differences in the criteria applied for the calculation of corporation tax between 2011 and 2013.
The Supreme Court has reduced another penalty from the Tax Authorities relating to several taxes between 2003 and 2005 from €19 million to €4 million (…). Santalucía expects the same thing to happen in this case. (…).
Last year, Santalucía reported premium volumes of €1,287 million and a profit of €64 million, down by 44% compared with the previous year.
Original story: Expansión (by Elisa del Pozo)
Translation: Carmel Drake
The post Ballesol Extends The Term Of Its €70M Mortgage With Santander appeared first on Aura Real Estate Experts.
Source:: AURA Real Estate Experts