(Bloomberg) -- Spanish auto-parts maker Grupo Antolin-Irausa has agreed to refinance more than €500 million ($536 million) of its bank debt, paving the way for a bond sale to refinance notes due in 2026, according to people familiar with the matter. 

The Burgos-headquartered company reached a deal with its lenders on Friday to amend the terms and extend the maturity of existing loans. The facilities had maturities mostly in 2025 and 2026 and have been refinanced to June 2029, the people said, asking not to be identified discussing private information. The loans will now pay Euribor plus a spread of between 250 and 400 basis points, depending on the company’s leverage.

As part of its strategic plan, the company has targeted divesting €150 million of assets between this year and next to strengthen its balance sheet and focus on the businesses with greater returns and growth potential. So far, it has sealed the sale of €100 million of assets, including 45% of a joint venture in Turkey, the sale of a trunk trim company, two sale and leasebacks — one in Spain and another one in Morocco — and a non-productive building in France, the people said.

A spokesperson for Antolin declined to comment.  

The amendment and extension of the loans as well as progress in its asset disposal plan pave the way for the company to tap the market to refinance its €250 million notes due in 2026. In its last earnings call in April, management told investors that it intended to refinance that bond in the market.

Antolin’s secured notes due in April 2026 gained 0.9 cents on the euro and are now indicated at 95.3 cents, the highest level in more than two years, according to data compiled by Bloomberg. The bonds due April 2028 rose 2.7 cents to 79.7 cents and are set for the largest daily gain since they were issued three years ago, the data show. 

--With assistance from Libby Cherry.

(Updates with bond move in sixth paragraph.)

©2024 Bloomberg L.P.