DOW JONES NEWSWIRES Italian telephone directories publisher Seat Pagine Gialle SpA (PG.MI) said late Thursday it has asked creditor bank Royal Bank of Scotland Group PLC (RBS) to grant the company a 20% flexibility margin under its existing senior facility agreement.
In a statement sent to the Italian stock exchange, the company said that in return, Seat would limit the possibility to distribute dividends until the total net debt over EBITDA ratio will be over 4x, after dividends' payment.
Should RBOS accept its request, the Seat board will examine a capital increase proposal for some EUR200 million, which will be submitted to the general shareholders meeting and expected to be completed by the first half of 2009.
In a preliminary assessment, Seat's main shareholders, representing 50% of the company's voting capital, have stated their positive view on the transaction, the company said.
Seat started negotiations with RBOS Dec. 1 and it expects to announce the outcome of those discussions by the end of December.
Seat posted a 69% fall in net profit for the first nine months of the year, as margins continued to fall due to tough economic conditions in its core markets.
Exchange Web site: http://www.borsaitaliana.it
-By Enza Tedesco, Dow Jones Newswires,enza.tedesco@dowjones.com <mailto:enza.tedesco@dowjones.com>
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(END) Dow Jones Newswires
December 04, 2008 17:41 ET (22:41 GMT)

Publié le 04 Décembre 2008 Copyright © 2008 Dowjones