Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. and Subsidiaries Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 2 and 29). In the event of discrepancy, the Spanish-language version prevails. 2017 CONSOLIDATED FINANCIAL STATEMENTS 46 14. Bank borrowings On 26 July 2017, the Parent arranged a new syndicated loan with a limit of EUR 350,000 thousand, which was earmarked to repay the syndicated financing arranged in May 2015 and to meet the Company's general corporate and cash requirements. Eight banks with which the Company has regular dealings participated in the transaction. Of the total amount, 50% is a five-year loan, with partial repayments, and 50% a revolving credit facility maturing at five years. At 31 December 2017, the limit was still EUR 350,000 thousand, with only a partial drawdown of the credit tranche. The Parent recognised a new financial liability, extinguished the previous liability and recognised the costs and fees of EUR 1,203 thousand, since the terms of both are substantially different: the present value of the cash flows under the new terms (discounted using the original effective interest rate) differs by more than 10 per cent from the discounted present value of the remaining cash flows from the original financial liability. The applicable interest rate is Euribor plus a market spread and the transaction is subject to compliance with financial covenants habitually used in transactions of this kind: the debt to EBITDA ratio and the interest coverage ratio. The Parent's directors expects the covenants to be complied with at 31 December 2017. The fair value of this financing approximates its carrying amount. At the date the transaction was arranged, the risk of changes in interest rates was hedged with a fixed interest-rate swap for an amount equal to 90% of the loan tranche (see Note 15). The Parent also has bilateral financing facilities to meets its cash requirements. Bank borrowings at 31 December 2017 and 2016: 2017 2016 Thousands of euros Limit Current balance drawn down Non-current balance drawn down Limit Current balance drawn down Non-current balance drawn down Syndicated financing 350,000 15,000 190,229 256,500 37,000 103,478 Credit facilities 108,000 58,232 - 99,000 38,945 - Interest payable - 1,123 - - 710 - Total 458,000 74,355 190,229 355,500 76,655 103,478 Non-current balances drawn down at 31 December 2017 by maturity: Thousands of euros 2019 2020 2021 2022 Total Syndicated financing 35,000 35,000 35,000 85,229 190,229