Telefónica makes equity play with Grupo Prisa

Iñaki Ferreras ©RapidTVNews | 19-06-2012

Telefónica has reached an agreement with Canal+ Grupo Prisa for which the former undertakes to subscribe convertible bonds worth €100 million in the media group.

In addition, Prisa has signed an agreement with La Caixa, Banco Santander and HSBC to convert part of its debt into shares for €334 million.

Both agreements are subject to a vote at Prisa’s next Annual General Meeting to be held on 30 June 30.

The bond issue is in two tranches: one of €334 million to creditor banks that have agreed to subscribe in full to HSBC, La Caixa and Banco Santander, in exchange for the loan modification to Prisa, and the other €100 million euros in cash to Telefónica.

The bond issue is subject to the approval of the exchange of claims provided for in the agreement by the financial creditors of Prisa and approval of the agreements by the shareholders' meetings of both Telefónica and Prisa as the creditor banks, if necessary, and compliance with each and every one of the conditions for full membership of the total emission.