FINANCING INSTRUMENTS AND MATURITY PROFILE
ProSiebenSat.1 Group uses various financing instruments. To meet its medium to long-term financing needs, the Company is financed by a term loan as part of a syndicated facilities agreement. In addition, the Company also makes use of the bond and promissory notes market. To meet its short-term and seasonal financing needs, the Company uses a revolving credit facility as part of a syndicated facilities agreement.
ProSiebenSat.1 Media SE has a Debt Issuance Program in place. This is a flexible financing program allowing the issuance of fixed and variable rate notes. The program has an overall volume of up to EUR 2.5 billion and aims especially at refinancing existing interest-bearing financial liabilities of ProSiebenSat.1 Group in the future. Volumes, maturities and interest rates of the new notes to be issued are determined by the conditions prevailing at the respective time of issuance.
In December 2016, the Company issued promissory notes (Schuldscheindarlehen) of EUR 500 million in total. The promissory notes comprise two seven-year maturities of EUR 225 million fix interest and EUR 50 million variable interest as well as a ten-year fix interest tranche of EUR 225 million.
The Group prepaid the 600 million Euros senior notes outstanding at nominal value already on January 15, 2021, i.e. 3 months ahead of the stated maturity date in mid-April 2021 by making use of a 3-months early redemption call according to the terms & conditions of the notes.
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 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 adjusted EBITDA - EBITDA adjusted for reconciling items that ProSiebenSat.1 Group realized in the last twelve months (LTM). The target for the ratio of net financial debt to LTM adjusted EBITDA is 1.5 to 2.5.
At the same time, the Company pursues an attractive total shareholder return for its shareholders and has also defined clear goals here. The target is to distribute a dividend of 50 % of the adjusted net income.