Italy's RCS MediaGroup SpA (RCS.MI) said late Thursday it would
offer three new ordinary shares for every existing ordinary share
at a price of 1.235 euros ($1.65), for up to EUR400 million, in a
recently approved rights issue.
The indebted Italian publisher, which on Thursday approved the
final conditions of a capital increase of up to EUR421 million,
also said it would offer three new savings shares for one existing
savings share at a price of EUR0.268 each, for up to EUR21
million.
RCS shares closed at EUR3.8 Thursday.
In a filing to the Italian stock exchange, RCS added that EUR380
million of the rights issue has already been guaranteed, thus
meeting a condition necessary to access several credit lines from a
number of Italian banks.
In fact, the banks, acting as joint global coordinators and
guarantors of the operation, have agreed to subscribe up to
EUR184.5 million of the unbought ordinary shares of the rights
issue, while shareholders have committed to subscribing EUR195.5
million of it.
Last month the Italian publisher--which controls Italy's most
influential daily, Corriere della Sera--approved a EUR600 million
capital increase to finance its new strategy plan and guarantee
banks' credit lines.
The banks involved are Intesa Sanpaolo (ISP.MI) UBI Banca
(UBI.MI), UniCredit (UCG.MI), Italy's branch of BNP Paribas
(BNP.FR), Banca Popolare di Milano (PMI.MI) and Mediobanca (MB.MI),
RCS previously said.
In an attempt to cut costs and improve financials, the company
also is trying to sell 10 of its magazines and said that should it
fail to find a buyer, it will close the magazines by the end of
June. It is also planning to lay off around 800 people.
RCS Mediagroup has been struggling with losses recently as its
net debt stood at EUR1.17 billion at March 31 and its gross
operating loss was EUR84 million in the first quarter.
RCS Mediagroup's stakeholders include Fiat SpA (F.MI),
Assicurazioni Generali (G.MI), Intesa Sanpaolo and Mediobanca.
Write to Enza Tedesco at enza.tedesco@dowjones.com and Manuela
Mesco at manuela.mesco@dowjones.com
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