Abengoa "not aware" of cashflow cut when it sold treasury shares
* Spanish firm did not expect slashed guidance two weeks ahead
* Financing for Brazilian projects a long-running issue
By Robert Smith
LONDON, Aug 6 (IFR) - Abengoa said that its management did not know it was about to slash guidance outlining a significant drop in its cashflow when it sold stock in mid-July.
On July 16 the troubled energy firm raised 97.6m from selling its treasury's stock of Class B shares for 2.8 each, leading to questions about why the company needed hard cash.
At the time Abengoa said it decided to monetise the treasury stock as it no longer needed to support hedging requirements on its convertible bonds.
But last Friday, July 31 - just two weeks later - Abengoa halved its 2015 free cashflow guidance from 1.4bn down to 600m-800m, spooking the bond market. The company then announced a 650m cash call on Monday August 3.
On Tuesday its shares were quoted as low as 1.044, some 60% lower than when the treasury stock was sold.
Abengoa maintains that it did not see the shock cashflow revision coming when it sold the shares. Continuación...