FINANCING INSTRUMENTS AND MATURITY PROFILE
ProSiebenSat.1 Group uses various financing instruments. In addition to a term loan, the Company also has access to a revolving credit facility. Another source of financing is the bond market.
Like the fixed rate notes, the syndicated loan is unsecured. It consists of a term loan of EUR 2.1 billion and a revolving credit facility (RCF) with a volume of EUR 600 million. The bond of EUR 600 million is listed in the regulated market of the Luxembourg Stock Exchange (ISIN DE000A11QFA7). The notes coupon is 2.625 % per annum. The bond is not rated.
These financing instruments were set up by ProSiebenSat.1 Group as part of a comprehensive package of refinancing in April 2014. The term loan and the RCF mature in April 2020, the notes in April 2021. In October 2015, the Group increased the term loan by EUR 700 million to EUR 2.1 billion. The leverage factor is still within the defined target range after the term loan increase.
ProSiebenSat.1 Group covers its financing requirements primarily with cash inflows from current business operations. Free advertising time on the TV stations is also an important investment currency to promote and acquire start-ups. Under the media-for-revenues and media-for-equity model, ProSiebenSat.1 Group participates in younger companies' value creation and thus expands its portfolio in Ventures & Commerce in particular.
ProSiebenSat.1 invests in markets with long-term growth prospects. An important benchmark for planning financing is the Group's leverage factor. It gives the level of net financial debt in relation to LTM recurring EBITDA - EBITDA adjusted for non-recurring effects that ProSiebenSat.1 Group realized in the last twelve months (LTM). The target for the ratio of net financial debt to LTM recurring EBITDA is 1.5 to 2.5.
At the same time, the Company pursues an earnings-oriented dividend policy and has also defined clear goals here. The target is to distribute a dividend of 80 % to 90 % of underlying net income.