Prisa refinances its debt

Juan Fernandez Gonzalez | 06-06-2013

Spain's telecom company Prisa has refinanced its debt for the third time in the past few years. According to El Confidencial, the company has received extra time from the banks to pay its debt which amounts to over €1,200 million.

The agreement with its main creditors – Santander, Caixabank, Bankia and HSBC – could be announced by the end of the week. But, according to the newspaper, some extra clauses will have been included in the agreement.
Prisa could continue functioning, gaining at least one more year to pay the debt, but Sogecable, which owns Canal+ and Digital+, would have to be sold. During the past few weeks all the company's financial movements seem to point to the sale of the satellite and pay-TV platform to Telefónica, but no official announcement has been made. According to El Confidencial, the creditors could be forcing Prisa to make this decision.
During the last few years, all Prisa's commercial choices have been influenced by its huge debt. In 2010, the company sold its distribution platform DTS to Telefonica and Cuatro to Mediaset. And in May, it was announced that Prisa TV was going to be taken over by its parent company.
If Prisa sells Sogecable, along with the refinancing, it will receive the extra time it needs to restructure itself and face the future challenges of Spain's media and audiovisual market.