More capital for All Iron. The Socimi specialized in tourist apartments has signed 62 convertible loans for a total nominal amount of 21.22 million euros that it plans to convert into securities on November 17. The company holds a general shareholders’ meeting that day on which it will foreseeably give the green light to the operation.
If carried out in its entirety, the conversion will reach about 20% of the Socimi’s capital and will be carried out through a capital increase. The loans accrue an annual interest rate of 5% until the effective date of conversion, according to BME Growth.
The conversion rate proposed for the credit offset increase is 11.30 euros per share. All Iron shares closed last Friday at a price of 11.20 euros. The board had a maximum period of six months to convert those bonds into equity if it accepted the conversion.
The exchange of securities would be carried out at a price of 11.30 euros per share
EY, the auditor who has analyzed this operation, has claimed to All Iron that 25% of these loans can be considered liquid and that the rest have a maturity of no more than five years, something that is not currently the case. However, All Iron’s board of directors has promised that these conditions will be met when the capital increase is approved.
All Iron closed on July 1 an expansion that led to its capital at 120 million euros, tripling its shareholders to more than 350. The company more than doubled its share capital, which at the end of 2020 was 57 million euros and, after the expansion, it will stand at 120 million euros.
Last August All Iron closed the purchase of the Hotel Tryp Chamberí in Madrid for an amount of 18.5 million euros. The Socimi will now proceed to reform the property to convert it into medium and short-stay apartments.
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