Prisa to refinance its debt for six more years
Juan Fernandez Gonzalez | 11-11-2013
Spain's Prisa, the majority owner of Sogecable and Canal+, is close to refinancing its debt for another six years, according to El Pais, the group's newspaper, which said a shareholders meeting will be held on 10 December during which the whole debt will be refinanced for the medium term.
The group, which has been struggling under pressure from creditors over the last year, has a debt of over €3,000 million. The size of the debt has been making it impossible for the communications company to access new credit lines, seriously compromising the viability of the group.
If the debt is refinanced, Prisa will immediately receive a credit line of around €350 million, apparently enough to cover the company's needs for the next few years. The refinancing project was sent to the shareholders last week, having already been agreed with 84% of them.
Prisa, the biggest communication group in Spain, has been restructuring its business over the last year, waiting for an injection of cash so it can seriously undertake the project. The company is to focus on Latin America, where it's editorial and radio businesses are on the increase, and intends to get rid of most of its TV sector.
Cuatro, sold to Mediaset, was the first channel to change owners. But lately Prisa has been looking for buyers for Canal+ too. The pay-TV platform, the largest in Spain by number of clients, has a stable position and a growing business in Yomvi, its online and on-demand platform. Several offers have been made so far, but none of them high enough to convince Prisa to sell its crowning jewel.