Spanish energy giant Iberdrola said yesterday it had refinanced the remainder of a bridge loan it took out in November 2006 to help pay for ScottishPower.
Iberdrola completed its £11.6bn acquisition of ScottishPower in April, 2007.
The company paid for ScottishPower - acquired to give it a foothold in the UK as well as increased wind-driven capacity - with a £7.96bn cash loan and the remainder in shares.
Creditors of that original loan have now extended the repayment term on 5.26bn of the debt owed since November 2008. The move will cover the company's financing needs over the next 20 months and also bolsters Iberdrola's liquidity position.
A spokesman for the Spanish power group yesterday said: "With this deal, Iberdrola reinforces its financial solvency and lengthens the average maturity of the debt, which is 5.9 years, at the same time as it increases its liquidity to 8bn.
"The stretching out of this debt, particularly in this economic climate, means that the company is in a stronger position all round and better able to meet its financial requirements."
Shares in Iberdrola, which operates in Spain, the UK, Latin America and the US, yesterday slipped 0.7% to 5.81.
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