Cox secured a bridge loan carrying 20% interest to support its $4.2 billion acquisition of Iberdrola's Mexican assets, Bloomberg reported Monday.
Cox secured the previously undisclosed six-month bridge loan in March for up to 60 million euros ($69.85 million) and used company shares as collateral, according to documents seen by Bloomberg.
The Madrid-based investment fund backing the loan could earn a 54% return if Cox repays the financing within five months, rising to 82% at maturity, while the loan carried a 1.2-times return multiple.
Cox drew strong investor attention in late July after agreeing to buy Iberdrola's Mexican assets for about $4.2 billion, a deal valued at nearly four times the company's market capitalization that would more than double revenue.
Cox secured the bridge loan to prevent delays in its Iberdrola acquisition after treasury-related issues slowed processes in some markets, according to the report, citing a company spokesperson.
The company said debt would finance most of the acquisition, with equity accounting for about 25% of the deal value, with Cox providing roughly 60% of that portion and unnamed top-tier partners funding the remainder.
Cox said the broader financing package for the Latin American acquisition carried an average debt cost of 6.92% and an average maturity period of six-and-a-half years.
Cox did not immediately respond to' request for comment.
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