Prisa launches issuance of convertibles into shares for up to 130 million euros

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Prisa, a Spanish group that publishes the newspaper El País, has launched an issue of bonds convertible into shares for up to 130 million euros to reduce the group’s debt, in a context of rising interest rates.

The 351,350,000 new shares to be issued by voluntary or compulsory conversion represent 47.44% of the company’s current share capital and 32.17% of the capital after the conversion of the bonds.

“The issue will allow the company, mainly, to obtain the necessary funds to, in accordance with the financing contracts signed, partially and early cancel the tranche of Prisa’s syndicated financial debt that entails the highest financial expense for interest,” the company said.

This junior debt tranche amounted to 190 million euros as of October 31, 2022, and is referenced to a variable interest rate of the Euribor plus 8%.

According to the results report for the first half of 2022, the group’s net debt stands at 915 million euros.

The conversion price of the convertible bonds was set at 0.37 euros per new share, and the nominal interest rate on convertible bonds will be 1.00% per annum fixed, Prisa said late on Monday.

The maturity date of the issue will take place five years from the date of issue of the bonds, and at that time they will be compulsorily converted into new shares, although investors may make the conversion voluntarily and in advance.

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