Prisa on the verge of refinancing its debt

Juan Fernandez Gonzalez | 07-07-2013

Prisa is close to making a deal that would provide it with financial stability for at least one more year.

According to El Confidencial, the multimedia group is making an agreement with 38 banks in order to postpone the payment of its 3bn debt for one year.
Last year, the company had a bigger debt and asked for money to change its financial structure. Less than 12 months later, Prisa has reduced its debt by almost 2bn, but most of the loans expire in March 2014.
The most recent audience reports place the newspaper El Pais and Prisa radio stations as the leaders of the Spanish market. In Latin America, the company's radio stations are also profitable.
The problems comes with the TV division. Prisa TV has already sold Cuatro and it may be interested in selling Canal+, despite it being the most watched cable platform. In the past few months, several companies have shown interest in buying it but at a price far below Prisa's intention, which is to sell the platform for no less than 1bn.
If the refinancing of the debt is finally reached, the company will have 12 months more to face its complicated future.