$198m keeps CanWest moving
TEN's parent company secures $198m million in the latest financial manoeuvring.
- Published by David Knox
- on
- Filed under News
Canwest, which owns 56.6% shares of Network TEN, has lined up $175 million ($198 AUD) in financing, interpreted by analysts as “an interim step.”
Struggling under $4 billion in debt, the company indicated that some of its current debtholders have agreed to provide an additional $100 million.
In return, they would receive new senior notes with a face value of $105 million paying a hefty annual interest rate of 12 per cent. That would translate into a yield of 12.6 per cent on the $100 million they actually provide to Canwest.
In addition, CIT Business Credit Canada Inc. will provide a $75-million senior secured revolving asset-based loan facility.
Canwest Media has agreed to, by June 15, reach an agreement in principle with members of the ad hoc committee of its 8 per cent senior noteholders regarding a recapitalisation transaction.
Source: Canadian Press, The Australian
4 Responses
Companies collapsing under their own greed…
As long as TEN can be sold successfully without going under all will be OK lol. Either way, companies like TEN would be good to get into in the current state of the market as most people go for the idiot box in an economic downturn.
I’m expecting Ten will be sold soon. It’s a case of not if, but when.
Wasn’t the changes to foreign ownership laws in 2007 (and Costello’s approval) such a Brilliant idea!