March 20, 2012 / 2:32 PM / 6 years ago

Seat PG to seek to refinance debt

MILAN, March 20 (Reuters) - Italian directories company Seat Pagine Gialle will seek to refinance its debt from next year after slashing it to around 1.4 billion euros through a restructuring deal, its chief executive said on Tuesday.

Earlier in March, Seat creditors agreed to a debt restructuring deal that includes the conversion of 1.2 billion euros of junior debt into equity. The deal cuts Seat’s net debt to a proforma of 1.447 billion euros, or 3.9 times core earnings, from 2.734 billion euros, or 7.4 times core earnings.

“Debt is now coherent with our cash flows. We are already in a situation where a refinancing can be made. We don’t plan to cut our debt significantly over the next two years,” CFO Massimo Cristofori said at a news conference.

“We could tap the market for a refinancing before 2016. We are unlikely to do it this year,” he said.

Cristofori also said the company would not pay dividends in the short term due to restrictions stemming from the debt restructuring.

The restructuring has to be implemented through a British court and will likely be completed in September-October, Seat executives said.

$1 = 0.7552 euros Reporting By Danilo Masoni

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