PRISA’s Board of Directors approves capital increase of 563 million

PRISA has notified the National Securities Market Commission (Comisión Nacional del Mercado de Valores (CNMV)) that its Board of Directors unanimously agreed yesterday to carry out a EUR 450 million capital increase with preferential subscription rights, previously authorized by the General Meeting of Shareholders held on November 15, 2017. The capital increase had been conditional on the achievement of a refinancing agreement with all its financial creditors, now signed, and is part of the restructuring process that the Group is currently undergoing.

The Board of Directors also unanimously approved an increase in additional capital, also with preferential subscription rights for existing shareholders, amounting to 113 million euros, with these funds to be used for business development.

The agreement was adopted taking into account the firm commitments and expressions of interest received from the major shareholders of the Company with regard to the amount of 113 million, with this figure at a similar level or even higher than that initially mooted by the Company on October 16, 2017 on the occasion of the proposed agreement to increase capital by 450 million euros, presented for the approval of the General Shareholders Meeting.

Given that both agreements for a capital increase lay out identical terms and conditions (each for its respective amount), it has been agreed to implement the two increases simultaneously and, therefore, it has been decided to increase capital by a total of EUR 563 million by issuing and circulating 469,350,139 new common shares at EUR 1.20 per share (0.94 euros par value and issue costs of 0.26 each).