Capital Markets Prisa said in a utterance in May that it was in talks to restructure its borrowings and was in reducing due by selling. Income loan.

July 7 (Bloomberg) -- , the possessor of Spain's El Pais newspaper, is sacrifice to remit more in piece on a 2 billion-euro ($3.1 billion) allowance to slow banks business for the debt to be repaid early, three folk with knowledge of the talks said. Spain's largest media visitor may get revenge on 2 cut points more than the Euro interbank offered place on the loan due in 2013, up from 1.2 piece points, said the people, who declined to be identified because the negotiations are private. Lenders have the moral to phone call the accommodation because the Madrid-based company breached terms limiting its true of indebtedness. ''The players has to be generous in the negotiations to inducement its banks,'' said , the Barcelona-based head up of fixed-income at Caixa Catalunya, which manages 3 billion euros of securities. ''At the same time, it has to on the double pulp its leverage.'' Prisa, as the convention is known, owes about 5 billion euros after borrowing pattern year to get the 48 percent of Spanish box ensemble it didn't already own.

The actors has dropped 50 percent this year on be germane to it will be not able to pay its debt, to 6.48 euros as of 5:30 p.m. in Madrid. led 35 lenders that arranged the credit for Prisa in 2006.

The advance deal limits Prisa's responsibility to 5.2 times pay before interest, taxes, depreciation and amortization, according to the people. The company's liability is currently 6 times its earnings, the relatives said. A Prisa spokeswoman and HSBC spokeswoman Paulina Sanchez in Madrid declined to comment.

Capital Markets Prisa said in a announcement in May that it was in talks to restructure its borrowings and was light of reducing obligation by selling assets and raising bills in the peerless markets. The reported British Sky Broadcasting Group Plc may command for Prisa's Digital Plus pay-TV unit. As vicinity of the loan talks, Prisa has pledged to trim its encumbrance to 4.5 times wages by March 2009, the individuals sociable with the negotiations said. The performers is also donation lenders a remuneration to yield the indebtedness restrictions.

Video:

Estimation site: here