Spanish petrochemical and plastic producer Ercros has signed a capital increase agreement worth Eur25 million ($33 million) with US financier Yorkville Advisers, the company said in a regulatory filing Monday.
Under the terms of the agreement signed Friday, the Barcelona-based company will sell as much as Eur25 million worth of new shares to the US company over a period of 36 months.
The deal will work as a put option for Ercros, which will retain the right, but not the obligation to obtain funds from Yorkville during the period.
Yorkville will conclude the transaction through its YA Capital Dutch fund, the note said.
Ercros, which specializes in the production of caustic soda and chlorine-based compounds ,was hit by a slump in demand during Spain's worst recession since the 1940s. It has been in discussions throughout the last year with potential creditors to roll over outstanding credit lines.
