PRISA’s capital increase is 7.63 times oversubscribed

The media group enjoys overwhelming response for its capital increase, with this latest operation completing the process of financial stabilization undertaken by PRISA

PRISA has today announced to the National Securities Market Commission (CNMV) the successful completion of a capital increase amounting to EUR 563 million, launched on 25 January. The operation was a resounding success, with demand oversubscribed by more than 7.63 times that of shares offered to the market.

The Group capital increase complements the debt restructuring agreement which had the unanimous support of creditors and which was approved by the Board of Directors last January. This agreement includes the extension of debt maturities until the end of 2022, does not provide for mandatory redemptions during the first three years, and provides for a first payment of 450 million euros using the funds obtained from the capital increase. The 113 million euros remaining from the capital increase will be allocated to business development. With both operations – debt restructuring and capital increase – PRISA thus successfully closes this financial stabilization drive.

The Group thus initiates a new stage that is set to pivot around education and media. Santillana will aim to strengthen its leading position in the world of education, in both Spain and throughout Ibero-America. This is set to be a shared goal with the Group’s media arm, which boasts enormously valuable assets such as EL PAÍS, radio network SER, sports daily AS, Radio Caracol and music brand Los 40. PRISA will now be investing in these businesses with a heavy focus on increased digitization.

This process has been supported by a new Board of Directors and is backed by a governance model tailored to the needs of the Group, overseen by non-executive Chairman, Manuel Polanco, and CEO, Manuel Mirat, who has taken on all executive functions of the organization.