Silicon metal and alloy producer Ferroglobe PLC entered a definitive agreement to sell its majority interest in Spanish subsidiary Hidro Nitro Española SA as it looks to off-load noncore assets.

Hidro Nitro, which operates hydropower plants with 18.9 MW of generating capacity under long-term leases, will be sold to an entity sponsored by a Spanish renewable energies fund.

The company said Dec. 24 it will receive net proceeds of about €18 million and use them to pay down debt under its revolving credit facility.

The transaction does not require any regulatory approvals and will close Dec. 31.

Additionally, S&P Global Ratings assigned Ferroglobe a long-term debt rating of B+, with a negative outlook.