Mediapro Group refinanced its debt, giving its majority shareholder Southwind Group more control over the Barcelona-based streaming and production services giant and easing financial pressure.
According to Mediapro, the deal “removes the uncertainty caused by the impact. [COVID-19] The pandemic will mean an emergency capital increase of 620 million euros ($530 million) for the company.
Most will be used to recover Mediapro’s net debt of up to €900.9 billion by up to €400 million, or to reduce its total debt by €500 million. This triples the debt burden of EBITDA. The remaining cash will be used as working capital.
Shareholders of Southwind, which owns Mediapro’s Chinese holding parent company Orient Hontai Capital, have fully subscribed to the refinancing. This means that Southwind’s overall share has increased from 53% to 80%. UK-based ad giant WPP now owns 10%, while Mediapro founders Jaume Roures and Tatxo Benet own the remaining 10%.
Mediapro, which has become one of the main players in European and Latin American production through programs such as Mediapro Studios José, a repentant spy – Closed 2021 with a turnover of approximately 1,200 million Euros and an EBITDA of 168 million Euros. However, it has been hit hard by the pandemic, and 2020 also saw the French Football Federation break its football broadcasting rights deal with the LFP.
The new deal puts it on a more reliable footing for the second half of 2022. It provides the company with a “solid and healthy financial structure on which to base its growth plans,” according to Mediapro.
The refinancing was first announced in November 2021.
Source: Deadline
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