TEN 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.