UPDATE 1-Spain's Sacyr reaches deal with Santander on Repsol debt-source

Thu Jan 15, 2015 6:36am EST
 
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(Changes source, adds analyst quote)

MADRID Jan 15 (Reuters) - Spanish builder Sacyr has reached an agreement with Santander on restructuring part of 2.2 billion euros ($2.6 billion) of debt associated with its 9 percent Repsol stake, a source close to the negotiations said.

The building company is still in talks with other creditors on the debt, the source said.

"With Santander, Sacyr has everything agreed and written down. It remains to be seen if the rest come onboard," the source said.

Santander, which holds about 27 percent of the debt, had no immediate comment. Sacyr declined to comment.

The debt is backed by Sacyr's Testa and Valoriza affiliates and the Repsol stake. The value of the Repsol stake has fallen sharply, partly in response to the drop in oil prices and also following Repsol's agreement to buy Canadian oil producer Talisman Energy.

The agreement with Santander includes extending the debt's maturity by at least four years and selling a third of the Repsol stake once the shares recover, online news portal El Confidencial said on Thursday.

"We think that this negotiation process will probably continue for a few more weeks, and it will be important to know the final details, also with respect to the pledges and guarantees provided by Sacyr (i.e. Testa and Valoriza), to help improve investor confidence in the stock," Espirito Santo said in an investor note on Thursday.

By 1100 GMT, Sacyr was up almost 2 percent at 3.2 euros while Repsol was up 1.4 percent at 14.6 euros per share.

($1 = 0.8493 euros) (Reporting by Andres Gonzalez, additional reporting by Jesus Aguado; writing by Paul Day; editing by Julien Toyer and Jane Merriman)