Business Context and Reporting Period
Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) filed Form 6-K on January 28, 2025, to disclose inside information regarding a specific debt instrument. The filing pertains to the company's $1,000,000,000 Series 9 Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities issued in September 2019.
Key Financial Metrics
The filing does not provide general financial metrics such as revenue, profit, cash flow, margins, or overall liquidity. The document focuses exclusively on the redemption terms of the Preferred Securities:
- Security Type: $1,000,000,000 Series 9 Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities.
- Redemption Date: March 5, 2025.
- Redemption Price: $203,250 per Preferred Security (comprising $200,000 principal plus accrued and unpaid distributions).
- Regulatory Status: Redemption has obtained prior consent from the European Central Bank.
Material Changes
BBVA has announced an irrevocable decision to redeem the Preferred Securities in whole on the First Reset Date. This action represents a material change in the company's capital structure, resulting in the cessation of distribution accruals on or after the redemption date. The filing does not provide comparative financial data against prior periods.
Guidance, Outlook, and Risks
Management Commentary: The redemption is executed in compliance with Securities Market legislation and the terms of the indenture. Distributions will cease to accrue on the redemption date.
Contingencies: The payment of the Redemption Price is subject to the satisfaction of conditions set forth in the indenture. The redemption price includes accrued distributions only if they are not cancelled or deemed cancelled pursuant to limitations on payment in the indenture.
Risks: The filing does not explicitly list new risks, though the redemption is contingent on the satisfaction of indenture conditions.
Key Facts for Investor Verification
- Verify the exact redemption date of March 5, 2025, and the final redemption price per security ($203,250).
- Confirm the status of accrued distributions and whether any limitations on payment apply under the indenture.
- Check the impact of this $1 billion redemption on BBVA's total Tier 1 capital ratio.
- Ensure the European Central Bank's consent for the redemption remains valid and unconditional.