RCS MediaGroup Approves Terms of Rights Issues, Refinancing Deal

Italian publisher RCS MediaGroup SpA (RCS.MI) said late Sunday its board has approved the general terms of two rights issue for a total of up to 600 million euros ($786.6 million), as well as a refinancing deal for up to EUR575 million.

In an effort to improve the company's weak financials, the company said in a press release these operations will need to be approved by shareholders at a meeting expected to take place between May 29 and May 31. The board will meet again on April 28 to approve the final terms and amounts of the capital increases.

The board is proposing a capital increase of at least EUR400 million, and will have the option to launch a second rights issue, which will increase the original amount to EUR600 million, by the end of 2015.

The company, which publishes one of Italy's most influential daily newspapers--Corriere della Sera--also said it has approved the terms of a refinancing deal with a group of banks to reschedule maturing debt worth EUR575 million. The deal comprises three lines of credit with maturities of between three and five years.

RCS MediaGroup also released its 2012 results. It reported a 2012 net loss of EUR509.3 million compared with a net loss of EUR322 million the previous year. It attributed the result to a relentless economics crisis, particularly in Italy and Spain.

The company added it doesn't foresee a trend reversal for 2013, "where risks and uncertainties are still high."

A significant loss is expected in the first quarter of 2013 mainly affected by negative market conditions, seasonality and restructuring costs, it added.

RCS said its full-year revenue dropped to EUR1.598 billion from EUR1.86 billion due to a fall in advertising and circulation, among other things.

Its earnings before interest, taxes, depreciation and amortization, or Ebitda, after non-recurring expense/income fell to EUR1.3 million from EUR142.3 million. Non-recurring net expenses came to EUR59.7 million in 2012 compared with EUR21.1 million in 2011.

Also, its net debt stood at EUR845.8 million at the end of December, down EUR92.4 million from the previous year, thanks to the sale of French publisher Flammarion.

RCS Mediagroup's stakeholders include Fiat SpA (F.MI), Assicurazioni Generali (G.MI), Intesa Sanpaolo (ISP.MI) and Mediobanca (MB.MI).

Write to Enza Tedesco at [e-mail]

Order free Annual Report for Assicurazioni Generali SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0000062072 or call [phone]

Order free Annual Report for Mediobanca SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0000062957 or call [phone]

Order free Annual Report for Intesa Sanpaolo SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0000072618 or call [phone]

Order free Annual Report for Fiat SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0001976403 or call [phone]

Order free Annual Report for RCS MediaGroup SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0003039010 or call [phone]

Order free Annual Report for RCS MediaGroup SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0003039028 or call [phone]

Order free Annual Report for Fiat SpA

Visit http://djnweurope.ar.wilink.com/?ticker=US3156218881 or call [phone]

Order free Annual Report for Intesa Sanpaolo SpA

Visit http://djnweurope.ar.wilink.com/?ticker=US46115H1077 or call [phone]

Order free Annual Report for Mediobanca SpA

Visit http://djnweurope.ar.wilink.com/?ticker=US58502K1060 or call [phone]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires