Prisa to refinance, sell Media Capital stake
Spanish media empire extends bridge loan until 2013MADRID -- Spanish media empire Prisa told stock exchange authorities Tuesday it will increase its capital by "at least" €450 million ($559 million) and get rid of its minority stake in Portuguese radio chain Media Capital or name an investment bank to sell off its stake.
The moves are part of the group's refinancing agreement with its creditors, which extends a bridge loan -- that was to come due at the end of July -- to May 19, 2013.
Prisa previously agreed to sell its stake in textbook publisher Santillana and guarantee its indirect role in play platform Digital Plus and free channel Telecinco as part of the agreement.
Prisa has taken significant moves in the past two quarters to bring down what was a €5 billion ($6.2 billion) debt. Earlier this year, private channel Telecinco acquired 100% control of Prisa's free channel Cuatro and 22% of its satellite platform Digital Plus. Last November Prisa sold a 21% stake in Digital Plus to Spanish telecom Telefonica for some $707.5 million.