UPDATE 2-Abengoa adds five new guarantors to high-yield bonds - notice
(Adds company's explanation for guarantee change)
By Robert Smith
LONDON, Aug 7 (IFR) - Abengoa has added five new guarantors to eight high-yield bonds, according to notices posted to the Luxembourg and London stock exchanges.
The notices state that the following companies are now guarantors of the bonds: Abeinsa Asset Management, Abeinsa Inversiones Latam, Abengoa Concessions, Abengoa Water, Siema Technologies.
An Abengoa spokesperson said the guarantors have been added because Spanish law has recently changed to allow limited liability companies to guarantee corporate debt. The bonds' guarantors also have to mirror those under Abengoa's syndicated facilities.
The changes apply to the following bonds:
500m 8.5% 2016 Abengoa bond
US$650m 8.875% 2017 Abengoa Finance bond Continuación...