PRISA completes new convertible notes issue

• Oversubscription makes a pro-rata allotment necessary.
• 100 million injection will allow PRISA to further reduce debt and continue pursuing business growth.
• The operation, which has once again received strong support from shareholders, opens the door to further refinancing.

PRISA is celebrating yet another successful business milestone. The Group has informed the Spanish Securities and Exchange Commission (CNMV) of the full subscription of its latest convertible notes issue, which has seen demand outstrip the maximum amount of the issue, set at 100 million euros.

The company has explained that, after the pre-emptive subscription period, in which shareholders were able to exercise their respective pre-emptive subscription rights, as well as request additional notes, the definitive allocation has now been made, which, due to the oversubscription, has made a pro-rata allotment necessary, in the terms foreseen in the offer.

The company has therefore announced that it will not proceed to the opening of the third period, in which a discretionary allocation was envisaged. The Group thus considers the offer as concluded and that the issue has been fully subscribed.

"The success of the operation highlights the strong support of shareholders for the Group's project," says the company, which last year also oversaw an oversubscribed notes issue worth 130 million euros.

This positive outcome of the issuance comes in the wake of recent rating upgrades announced in mid-March by the rating agencies S&P and Moody's. Both firms lauded the significant operational improvement in the education and media businesses over the past three years, as well as PRISA's efforts to reduce debt plus positive growth prospects for the coming years. All this is now being reflected in the performance of share price, which so far this year has appreciated by nearly 10%, and opens the door for the Group to undertake a new refinancing.

The 100-million euro issue will be used to reduce PRISA's financial debt in the most costly tranche in terms of interest, i.e. the junior debt tranche, which is tied to a variable interest rate equal to Euribor +8%. The Group is also committed to promoting growth opportunities for the Group's business units.

Over the next few days, the corresponding notarial deed of subscription and disbursement of the convertible notes will be executed and filed with the Commercial Registry, as well as the application for admission to trading of the convertible notes in the Spanish regulated market AIAF Mercado de Renta Fija, according to the company.

PRISA will communicate in due course the prior verification by the CNMV of the requirements for the admission to trading of the convertible notes and their admission to trading on AIAF.