Spanish TV Producer’s Owners Agree on $702 Million Restructuring
(Bloomberg) -- Shareholders of Mediapro, producer of broadcasts for Spain’s LaLiga soccer league, agreed on a recapitalization plan to help its balance sheet recover from the ravages of the pandemic.
The deal includes an injection of 150 million euros ($170 million) to provide liquidity and a capital increase of 470 million euros that will be fully subscribed by shareholders related to Orient Hontai Capital, the company’s largest investor, Mediapro said in an emailed statement on Friday.
Other owners, including advertising giant WPP Plc and founders Jaume Roures and Tatxo Benet will see their stake diluted, although Roures and Benet will continue to manage the group. The agreement, expected to close in the coming days, will reduce the company’s leverage to three times its earnings before interest, taxes, depreciation and amortization, according to the statement.
Barcelona-based Mediapro had been in talks with lenders since March after a 50 million euros capital increase and a 110 million euros loan in 2020 proved insufficient to compensate for a drop in revenue caused by Covid-19. Creditors Searchlight Capital Partners LP and Invesco Ltd., which provided a 60 million-euro bridging loan earlier this year, had also proposed a restructuring that would have given them control of the business.
Revenue for the producer of soccer-match coverage, films and shows for broadcasters fell 38% to 1.12 billion euros last year. It also agreed to pay 100 million euros to France’s Ligue de Football Professionnel after breaking an exclusive broadcast rights contract. The French league was forced to reallocate the rights at a heavy discount, hurting the finances of its teams.
Mediapro expects to close the year with revenue above 1.2 billion euros, and upgraded its Ebitda outlook to 160 million euros from 124 million euros, according to Friday’s statement.
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