S&P pares Prisa

S&P said it lowered its issuer rating for Promotora de Informaciones SA (Prisa) to SD from CC after the company modified its term loans and issued about €110 million of super senior debt, after receiving consent from all debtholders.

Prisa repaid more than €400 million in debt with Santillana Spain and Media Capital sale proceeds, issued about €110 million of super senior debt and extended its remaining term loans by slightly over two years, with a modest increase in interest rate (mostly through payment in kind).

Prisa’s post-transaction debt includes super senior debt totaling €225 million (€145 million term loan and a currently undrawn €80 million revolving credit facility) and senior debt of about €750 million, the agency said.

“In line with our criteria, we view the transaction as distressed and tantamount to default, because in our view, investors are receiving less than promised in the original term loans contract. Moreover, we don’t view the transaction as opportunistic because, absent this new financing, the group would likely have faced a conventional default over the near term,” S&P said in a press release.

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