FINANCING INSTRUMENTS AND MATURITY PROFILE

ProSiebenSat.1 Group uses various debt financing instruments for the purpose of its Group financing. This Group financing is regularly adjusted with respect to volumes and maturities.

ProSiebenSat.1 Group is currently financed via two term loans and a revolving credit facility (RCF) as part of a syndicated facilities agreement provided by banks as well as various promissory loans. 

In May 2022 ProSiebenSat.1 Group has extended its syndicated facilities agreement. A term loan of 400 million Euros is maturing in April 2025 (plus extension options for totally up to two years) and another term loan of 800 million Euros in April 2027. The RCF, as part of the syndicated facilities agreement of 500 million Euros is also maturing in April 2027.

In December 2016, the company issued promissory loans in the amount of 500 million Euros. These consist of two seven-year terms of 225 million Euros with a fixed coupon and 50 million Euros with variable interest rate, as well as a ten-year fixed coupon tranche of 225 million Euros.

In October 2021, the company issued another set of promissory loans in the total amount of 700 million Euros with tenors of four, six, eight and ten years and respective volumes of 226 million Euros, 346 million Euros, 80 million Euros and 48 million Euros. The issuance consists of four tranches with fixed coupons (four to ten years) and three tranches with variable interest rates (four to eight years). The fixed coupon tranches total 403 million Euros and the floating interest tranches total 297 million Euros.

For short-term or seasonal financing needs, ProSiebenSat.1 Group uses its RCF. Additionally, various money market instruments are used for this purpose.

In addition, the ProSiebenSat.1 Group has a debt issuance program via ProSiebenSat.1 Media SE in place. This is a flexible financing program for the issuance of fixed and variable interest rate notes with multi-year maturities. The program has a volume of up to 2.5 billion Euros. Volume, tenors, and interest of the notes to be issued are based on the prevailing conditions at the time of issuance. Currently, however, no notes are outstanding under the debt issuance program.

Borrower of the syndicated credit facilities, the promissory loans and the money market instruments used for Group financing purposes is currently ProSiebenSat.1 Media SE. The described debt instruments used to finance the ProSiebenSat.1 Group are all unsecured. 

The maturity profile of the stated financing instruments is shown in the chart below.

Financing Instruments and Maturities

Financing Instruments

in EUR m

Maturity

Promissory Loan '16

275

Dezember 2023

Term Loan '22

400

April 2025

Promissory Loan '21

226

Oktober 2025

Promissory Loan '16

225

Dezember 2026

Term Loan '22

800

April 2027

Promissory Loan '21

346

Oktober 2027

Promissory Loan '21

80

Oktober 2029

Promissory Loan '21

48

Oktober 2031

Excluding syndicated revolving credit facility (currently undrawn) totaling EUR 500 million (maturing April 2027) as well as other loans and borrowings.

Financial Policy

As part of its strategy the ProSiebenSat.1 Group focuses on sustainable and profitable growth based on three pillars: Entertainment, Dating and Commerce & Ventures. Operating cash flows from current business activities and the use of external financing are part of the financing mix. An important indicator for the corresponding financial planning is the Group's leverage ratio (leverage factor). It indicates the level of net financial debt in relation to LTM adjusted EBITDA – EBITDA adjusted for reconciling items that the ProSiebenSat.1 Group has generated in the last twelve months (LTM = last twelve months). The target for the ratio of net financial debt to LTM adjusted EBITDA is a factor of between 1.5 to 2.5.

At the same time, the ProSiebenSat.1 Group pursues an attractive dividend policy for its shareholders and has also defined clear goals. The target is to distribute a dividend of 50 % of the adjusted net income (Group adjusted net income).

Another key element of its financial target framework and part of the ProSiebenSat.1 Group's growth strategy is to achieve a P7S1 ROCE1) (return on capital employed) of more than 15 per cent in the medium term. P7S1 ROCE is the ratio of the Group's adjusted EBIT to the Group's capital employed.

1) For definition see page 98 of the Annual Report 2020.