Mondadori: credit lines renegotiation fon a total amount of euro 515 million

In order to support the Group’s core business development strategy, improved conditions were defined in relation to duration and reduction of the total annual average cost

Mondadori Group informs that the renegotiation of the existing committed credit lines amounting to a total of euro 515 million has been completed. Today a new amortizing loan agreement with a five year maturity date (December 2020) was signed with a pool of six leading banks (BNP Paribas, Banca Popolare di Milano, Intesa Sanpaolo, Mediobanca – Banca di Credito Finanziario, UniCredit, UBI Banca), replacing the current loan agreement which provided for shorter repayments (2016-2017-2018), and including the financing of RCS Libri acquisition.

At 30 September 2015, Mondadori Group NFP was equal to euro -243.6 million.

The new agreement envisages more favorable economic conditions for the Group in terms of lower interest rates and fees: the initial cost of the credit lines for 2016 will be equal to 325 bps – in addition to the reference Euribor rate – with a reduction of approximately 90 bps against the current cost. This rate can also further decrease, on an annual basis, according to the positive evolution of the net debt/EBITDA ratio.

In order to sustain the Group’s core business development, new covenants (net debt/EBITDA) were also negotiated for 2016 (4.50x) and 2017 (3.75x), against the current 3.50x, which will be applied upon completion of the acquisition of RCS Libri.