Corte Inglés is going to approve more favorable financing conditions in order to reduce the costs of servicing its debt. It plans to refinance 5 billion euros of mor ethan 5.9 billion in debt now that the euribor is low and it can find more attractive long-term rates.
The consumer product distribution titan, like other companies, is struggling to deal with falling demand within Spain and wants to strengthen its balance sheet now that it has fewer obstacles in the way of refinancing its debt.
The company has 7.45 billion euros in cash and extensive property holdings. Unlike other big Spanish companies, Corte Inglés only operates in Spain, but the strength of its balance sheet has allowed it to survive through the crisis and renegotiate its debt.
