Sirius Media Restructures Its Bond Debt: Rate Reduced from 14% to 4.25%
On Monday, the media group announced the complete restructuring of its €5.8 million bond debt, approved by 93.61% of the bondholders. This operation cancels €2 million in past interest and reduces the annual debt burden by three times, bringing the rate down from 14% to approximately 4.25%.
Cancellation of Past Interests and Drastic Rate Reduction
The agreement restructures the entire bond loan of €5,774,322 issued in March 2023, implemented according to the resolution adopted by the General Assembly of Bondholders on April 14, 2026. The new agreement cancels €1,973,471 in accumulated interests and penalties, generating a non-recurring gain for the 2026 financial results. The interest rate is reduced from 14.00% to Euribor 12M + 1.50%, which is approximately 4.251% per year as of today, revised each anniversary year.
Annual Interest Burden Reduced to €293,466 and Repayment Smoothed Over Five Years
The annual interest charge is reduced from €808,405 to €245,466. Including the flat management fees of €4,000 per month (€48,000 per year), the total annual cost reaches €293,466, representing an effective rate of 5.08% and a net saving of €514,939 per year. The agreement includes an 11-month standstill with no mandatory payment, followed by the repayment of the principal in 60 equal monthly installments of €96,238.70 starting from May 3, 2027, along with the monthly management fees paid to the representative of the bondholders. Current interests do not burden the cash flow: they are accumulated and then settled at the end of the plan by issuing Sirius Media shares valued at the 30-day VWAP plus a 20% premium, or in cash at the company's discretion depending on market conditions.
End of Litigations and Acceleration Clause for Repayment in Case of Sale
The amendment eliminates any future late interest and penalties, establishes a regularization period of 45 days, and strictly frames the expiration of the term, now conditioned on a vote by the General Assembly of Bondholders. The representative of the bondholders waives on behalf of all bondholders any action and claim against the company and its directors, definitively ending the litigations. In case of a sale of the historic 'Media' business, 30% of the net proceeds would be allocated with priority to the early repayment of the bondholders. This operation is part of the group's ongoing trajectory of financial recovery: debt reduction of €32.7 million in May 2025, cessation of Atlas bond financing in January 2026, opening of a judicial reorganization procedure solely at the level of Sirius Media Production in April 2026, and completion of a share consolidation in May 2026.
