By Carolina Mandl
SAO PAULO, May 24 (Reuters) - Brazilian engineering conglomerate Odebrecht SA on Thursday secured a loan of 2.6 billion reais ($717 million) from the country's two biggest private lenders on the eve of a potential bond default, according to two sources.
Odebrecht and banks signed debt refinancing contracts to confirm an informal agreement earlier this week. To finalize the details of the agreement, however, Odebrecht still depends on the completion of a issuance of local bonds that will be acquired by banks.
Under the terms of the contracts, Itaú Unibanco Holding SA and Banco Bradesco SA agreed on a joint loan of 2.6 billion reais to Odebrecht. Disbursement will occur in two installments, with 1.7 billion reais arriving immediately and the rest coming by December, said the sources.
Odebrecht did not immediately comment on the matter.
Odebrecht will use part of the new money to repay a 500 million-real bond issued by construction unit Odebrecht Engenharia e Construção. Friday is the last day of a 30-day grace period for the repayment and the company is rushing to meet deadlines with bondholders.
The agreement also granted Odebrecht an additional year to repay some loans in return for additional collateral pledged to some banks, the sources said.
The refinancing negotiations involved Bradesco, Itaú, state development bank BNDES, state-controlled lender Banco do Brasil SA and Banco Santander Brasil SA. Although only Itaú and Bradesco will make a new loan, all the banks had to agree on Odebrecht taking on more debt and changes to collateral.
Odebrecht's 38.3 percent stake in petrochemical producer Braskem SA will serve as collateral for more than 10 billion reais in loans, including the new disbursement.
($1 = 3.63 reais) (Reporting by Carolina Mandl; Additional reporting by Tatiana Bautzer; editing by Diane Craft)