Categories: Football

Mediapro announces a recapitalization plan

The shareholders of Mediapro, producer of broadcasts for the Spanish soccer league LaLiga, agreed on a recapitalization plan to help their balance sheet recover from the ravages of the pandemic, according to a report from Bloomberg.

The agreement includes an injection of 150 million euros (170 million dollars) 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, he said. Mediapro 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 run the group. The deal, which is expected to close in the next few days, will reduce the company’s leverage to three times its earnings before interest, taxes, depreciation and amortization, according to the statement.

Mediapro has been in talks with lenders since March after a € 50 million capital increase and a € 110 million loan in 2020 proved insufficient to offset the large drop in revenue caused by Covid-19.

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Gabby Barker

Gabby is someone who is interested in all types of sports, she loves to attend watching matches live. Whenever there is a match being played in her city, she makes sure to get the tickets in advance. Due to the love for sports, she joined Sportsfinding, and started writing general sports news. Apart from writing the news, she is also the editor for the website who checks and edits every news content before they go live.

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