TEN to raise $138m

ten towerTEN Network Holdings has announced a $138 million capital raising to strengthen its balance sheet and pay down debt.

The company will attempt to place 120 million new shares, equal to about 13% of shares currently on issue, priced at $1.15.

TEN Network says the placement is fully underwritten by Macquarie Capital Advisers Limited. It says it will remain within its banking covenants at the end of its financial year on August 31, with or without the cash to be raised by the share shale.

TV revenue for TEN fell 13% for the nine months to May 31.

Meanwhile the outlook for parent company CanWest looks grim as it struggles under about $4 billion in debt.. On the weekend the company revealed that its main lenders had agreed to extend the recapitalisation deadline by two weeks to August 14. Canwest recently announced the sale of Canada’s CHCH-TV and CJNT-TV, and closed local stations putting approximately 80 people out of work.

Source: ABC Online, The Australian, Canadian Press

4 Comments:

  1. Just a correction there – CanWest hasn’t shut down any of it’s E! or Global stations in Canada yet (in particular CHEK Victoria, BC and CHCA Red Deer, AB). Not until the end of the month. It is reported that new buyers are expected to be found before that happens.

    Apparently CHCH Hamilton, ON and CJNT Montreal, QC were sold for C$12 (A$13.30). CTV was also trying to load some stations off for the grand sum of C$1 (A$1.10)

  2. The Australian article paints a very sober picture for Canwest indeed:

    ”Despite the recent recovery in its share price, the company remains valued by the market at little more than $C30m, down from its valuation of in excess of $C2bn at the height of the boom.

    In the face of the cash-strapped state of its parent, Ten’s share price has seen a strong recovery in Australia in recent weeks amid recent hit shows such as MasterChef. Ten’s current share value of $1.2bn dwarfs that of its main investor.”

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