risa extends debt refinancing to 2013

Iñaki Ferreras | 03-12-2010

Spain's media group Sogecable's Prisa has extended the end of its loan with its banks until May 2013 according to reports in Europa Press.

The move is a result of the agreement between the Spanish group and the American fund Liberty by means of which Prisa has received €650 million which will serve to restore its financial situation and repay its large outstanding debts.

Prisa's newly issued shares will start running in the New York Stock Exchange from 3 December and subscription rights given through warrants to Prisa's shareholders previous to the operation with Liberty will be negotiated in Spain's Stock Exchange from 9 December.

Highlighting the importance of these agreements, Juan Luis Cebrián Prisa's president and CEO said the deal will allow the company to “centre their efforts in the development of businesses and the transformation of their traditional business model through integrating the diverse business areas through the digital technology"

In addition, the group's president said that "the creation of a multimedia platform will improve our offering with new products and services and at the same time it will connect the consumers with new contents and services".

Liberty's cofounders and also now members of Prisa's Board of Directors Martin E. Franklin and Nicolas Berggruen underlined this capital injection "will strengthen Prisa's financial situation and at the same time it will ease its recuperation either in Spain and on an international level.