PRISA's New Shares Go Public

PRISA refinances its debt till 2013

New stock floats in Spain and New York on December 3

Dec 02, 2010, 17:37 ET from PRISA

MADRID, Dec. 2, 2010 /PRNewswire/ -- Spain's competition body, (CNMV) today approved the deal allowing the listing of shares and warrants of PRISA on both the New York and the Spanish Stock Exchanges, as a result of the approval of the merger with Liberty at the Extraordinary General Board Meeting, held on Saturday 27 November.

PRISA has already received 650 million Euros, which will serve to restore the finances of the company and repay debt in the restructuring process agreed with creditor banks. These have signed a final bridge loan until May 2013.

PRISA's new shares both ordinary and convertible will be listed on the Spanish Stock Exchange Markets, and through ADRs (American Depositary Receipts) in the New York Stock Exchange (NYSE) from December 3, 2010. All subscription rights issued to shareholders of PRISA, prior to the operation with Liberty (Nov. 23), will be also listed on the Spanish Stock Exchange Markets not later than December 9, 2010.

Juan Luis Cebrian, chairman of the Executive Committee of the Board and Chief Executive Officer of PRISA stressed the importance of the deal that "allows PRISA executives to focus their efforts on business development and on the transformation of the traditional business model into one that will integrate all units through digital technology. Furthermore, we are creating a multimedia platform that will enhance our product and service offering and match consumers with new digital content," he said.

"The financial support that Liberty is able to provide to PRISA will substantially strengthen its balance sheet, restoring the company to financial health," said Martin E. Franklin, Chairman of Liberty. "The capital infusion will allow PRISA to more aggressively pursue its growth strategies, including digital product enhancement, international expansion and greater synergies between its market-leading media assets. With listings in both the U.S. and Spain, PRISA will be a more diverse company, more international, and will have the new model of corporate governance necessary to face this new phase."

Nicolas Berggruen, Liberty's co-founder and member of the Board of Directors of PRISA, said, "I am delighted that Liberty shareholders have shown so clearly their support. Martin and I look forward to helping PRISA execute its growth strategy and fulfil its considerable potential."

PRISA is the world's leading Spanish and Portuguese-language media group in the fields of education, information and entertainment, thanks to its multichannel offer of-top quality and high-demand products. Present in 22 countries, it reaches more than 50 million users, through its global brands, like El Pais, 40 Principales, Santillana and Alfaguara. As a lead global player in general-interest news, both Pay TV and Free-to-View TV, spoken-word and music radio, education and publishing, it's one of the world's most profitable media groups with an extraordinarily wide range of assets.

This operation involved Violy & Co and Tegris Advisors LLC, as financial consultants, and Cortes Abogados, Garrigues, Wachtell, Lipton, Rosen & Katz and Greenberg & Traurig Law, as legal advisors.