Prisa close to reaching EUR 3 billion refinancing agreement with creditors
Two sources told Bloomberg that Promotora de Informaciones or Prisa was close to reaching a deal to refinance over EUR 3 billion or USD 4 billion in debt with its creditors. The people with knowledge of the matter spoke on the condition of anonymity as the talks were private. They added that Prisa is set to meet with its lenders on November 19 while a definitive signing of the agreement has been scheduled at the end of the month. Some international and Spanish lenders that have a 15% stake in Prisa's debt will still give their approval for the refinancing deal, the sources said. Prisa publishes the newspaper El Pais. It is the largest media company in Spain.
The sources also said that Prisa preferred to get the undivided agreement from its creditors for the deal. However it was also possible that majority of the lenders will give their support for as long as this will be approved by the courts. It was only this month that Prisa got a new line of credit worth EUR 350 million for its financing needs.
The debt set to be refinanced is still due in 2014 and 2015. The deal will give Prisa the chance to sell some assets as advertising spending in Spain continues to remain low. The media company has set a meeting with shareholders on December 10 to get their approval on the issuance of warrants. This will form part of the refinancing Prisa seeks that will enable it to extend the maturities of its debts to five or six years. According to a Prisa representative in Madrid, the refinancing deal still needs more work but that it should be ready by the investor meeting on December 10. She gave no comment on the creditors' meeting.
Prisa is also the publisher of business newspaper Cinco Dias. It also owns television and radio stations and magazines.