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PRISA completes debt refinance deal and sells Santillana Spain to Sanoma

31-12-2020

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The refinancing agreement involves extending the maturity of PRISA's debt until March 2025, with an initial cost of 5.5%. It foresees amortization of 400 million of debt (slashing net debt by more than 30%) and establishes a framework for a future effective separation of the Education and Media businesses. The refinancing will equip the company with around 275 million euros to meet liquidity needs and to develop its strategic business plans.

Meanwhile, the sale of Santillana Spain to Sanoma is worth 465 million euros, which represents 9.6 times the average EBITDA registered for the educational cycles over the 2017/2019 period, and is considerably higher than the chief comparable transactions in the sector. The preliminary impact of the operation on PRISA's consolidated income statement is estimated at approximately 360 million euros. Uría Menéndez and Morgan Stanley have acted as PRISA's advisors throughout the operation.

Together, these operations enable PRISA to focus, as a priority, on the management and enhancement of its two chief businesses, Education and Media, and to build these on firm and sustainable bases. This will accelerate PRISA's digital transformation, focused both on the development of Ed-Tech learning systems in Latin America and on subscription models in its Media businesses.

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