By Sarah Morris
MADRID, Feb 23 (Reuters) - Indebted Spanish media company Prisa unveiled a restructuring plan on Tuesday under which a group of investors will inject millions of euros into the company while the founding Polanco family will remain as its managers.
Prisa, owner of Spain's bestselling newspaper El Pais and other media businesses such as radio stations in Latin America, said a group of unnamed international investors could invest between 450 million euros ($611.3 million) and 600 million as it grapples with a multi-billion euro debt pile.
Prisa, whose shares were down 3 percent at 3.44 euros by 1208 GMT, issued the statement after trading in its shares was briefly suspended following a report of an imminent stake purchase in the group.
'In the last few months talks have been held with various groups and Prisa confirms that currently it could reach a deal with a group of investors interested in participating in the ... capital of the company with a figure of between 450 and 600 million euros,' the group said.
Earlier, financial website El Confidencial reported that a group of 30 U.S. funds and a number of existing shareholders had agreed to buy into the company, cutting the stake of the founder Polanco family to 35 percent from 70 percent.
Citing financial sources close to the deal, the website had given a figure of up to 725 million euros.
Prisa, has been looking to sell assets and restructure its 5 billion euro debt which is about six times its earnings before interest, taxes, depreciation and amortization (EBITDA). It has a market capitalisation of about 778 million euros.
Last week, Prisa said it was still in talks with potential investors to strengthen its capital structure, was finalising a deal with creditor banks to restructure its debt and might sell certain assets as part of that process.
El Confidencial had said the imminent arrival of fresh capital explained why banks had agreed to extend a 1.9 billion euro bridge loan, due for payment in March, to 2013.
Prisa said on Monday the bridge loan rollover was in the process of being agreed by a second group of banks with which it had a syndicated loan.
(Additional reporting by Robert Hetz; Editing by Sharon Lindores and David Holmes)
($1 = 0.7361 euro) Keywords: PRISA/ (sarah.morris@reuters.com; +34 91 585 8328; Reuters Messaging sarah.morris.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
MADRID, Feb 23 (Reuters) - Indebted Spanish media company Prisa unveiled a restructuring plan on Tuesday under which a group of investors will inject millions of euros into the company while the founding Polanco family will remain as its managers.
Prisa, owner of Spain's bestselling newspaper El Pais and other media businesses such as radio stations in Latin America, said a group of unnamed international investors could invest between 450 million euros ($611.3 million) and 600 million as it grapples with a multi-billion euro debt pile.
Prisa, whose shares were down 3 percent at 3.44 euros by 1208 GMT, issued the statement after trading in its shares was briefly suspended following a report of an imminent stake purchase in the group.
'In the last few months talks have been held with various groups and Prisa confirms that currently it could reach a deal with a group of investors interested in participating in the ... capital of the company with a figure of between 450 and 600 million euros,' the group said.
Earlier, financial website El Confidencial reported that a group of 30 U.S. funds and a number of existing shareholders had agreed to buy into the company, cutting the stake of the founder Polanco family to 35 percent from 70 percent.
Citing financial sources close to the deal, the website had given a figure of up to 725 million euros.
Prisa, has been looking to sell assets and restructure its 5 billion euro debt which is about six times its earnings before interest, taxes, depreciation and amortization (EBITDA). It has a market capitalisation of about 778 million euros.
Last week, Prisa said it was still in talks with potential investors to strengthen its capital structure, was finalising a deal with creditor banks to restructure its debt and might sell certain assets as part of that process.
El Confidencial had said the imminent arrival of fresh capital explained why banks had agreed to extend a 1.9 billion euro bridge loan, due for payment in March, to 2013.
Prisa said on Monday the bridge loan rollover was in the process of being agreed by a second group of banks with which it had a syndicated loan.
(Additional reporting by Robert Hetz; Editing by Sharon Lindores and David Holmes)
($1 = 0.7361 euro) Keywords: PRISA/ (sarah.morris@reuters.com; +34 91 585 8328; Reuters Messaging sarah.morris.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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