WINNIPEG and SYDNEY – Canwest Global said late Wednesday it has agreed to sell its 51% ownership in Australian broadcaster Ten Network.
The buyer is Macquarie Capital Advisers Limited and the sale price is A$680 million, or about C$634 million. “The sale, by means of a block trade on a fully underwritten basis, is expected to be completed on or about October 1,” says the press release.
In connection with the sale of the shares of Ten Holdings, Canwest has agreed “with its senior secured lenders and the members of the ad hoc committee of holders (the "Ad Hoc Committee") of its US$761 million aggregate principal amount of 8% senior subordinated notes (which are guaranteed by several subsidiaries of CMI,” reads the release, “including CMIH) with respect to the use of the net proceeds of the sale. Pursuant to the agreement, the net proceeds will be used as follows:
— to repay in full all amounts outstanding under the 12% senior secured notes of US$95 million (CDN$102 million) issued by CMI and Canwest Television Limited Partnership;
— CDN$85 million for general corporate and working capital purposes, including to repay all outstanding borrowings (other than letters of credit) under the senior secured revolving asset-based loan facility with CIT Business Credit Canada Inc., which facility will continue to remain available to CMI after the repayment; and
— to deposit US$398 million (CDN$426 million) with the trustee for the benefit of the holders of the 8% senior subordinated notes.
“The sale of the shares of Ten Holdings is expected to facilitate continuing discussions with the Ad Hoc Committee regarding a recapitalization transaction,” adds the release.
“CMI and the members of the ad hoc committee have entered into a further extension agreement and forbearance to October 6, 2009. CIT Business Credit Canada Inc. has agreed to extend to October 15, 2009 certain milestones that were to have been achieved by September 25, 2009.”
