Italian publisher RCS MediaGroup SpA (RCS.MI) said late Sunday
its board has approved the general terms of two rights issue for a
total of up to 600 million euros ($786.6 million), as well as a
refinancing deal for up to EUR575 million.
In an effort to improve the company's weak financials, the
company said in a press release these operations will need to be
approved by shareholders at a meeting expected to take place
between May 29 and May 31. The board will meet again on April 28 to
approve the final terms and amounts of the capital increases.
The board is proposing a capital increase of at least EUR400
million, and will have the option to launch a second rights issue,
which will increase the original amount to EUR600 million, by the
end of 2015.
The company, which publishes one of Italy's most influential
daily newspapers--Corriere della Sera--also said it has approved
the terms of a refinancing deal with a group of banks to reschedule
maturing debt worth EUR575 million. The deal comprises three lines
of credit with maturities of between three and five years.
RCS MediaGroup also released its 2012 results. It reported a
2012 net loss of EUR509.3 million compared with a net loss of
EUR322 million the previous year. It attributed the result to a
relentless economics crisis, particularly in Italy and Spain.
The company added it doesn't foresee a trend reversal for 2013,
"where risks and uncertainties are still high."
A significant loss is expected in the first quarter of 2013
mainly affected by negative market conditions, seasonality and
restructuring costs, it added.
RCS said its full-year revenue dropped to EUR1.598 billion from
EUR1.86 billion due to a fall in advertising and circulation, among
other things.
Its earnings before interest, taxes, depreciation and
amortization, or Ebitda, after non-recurring expense/income fell to
EUR1.3 million from EUR142.3 million. Non-recurring net expenses
came to EUR59.7 million in 2012 compared with EUR21.1 million in
2011.
Also, its net debt stood at EUR845.8 million at the end of
December, down EUR92.4 million from the previous year, thanks to
the sale of French publisher Flammarion.
RCS Mediagroup's stakeholders include Fiat SpA (F.MI),
Assicurazioni Generali (G.MI), Intesa Sanpaolo (ISP.MI) and
Mediobanca (MB.MI).
Write to Enza Tedesco at enza.tedesco@dowjones.com
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