TORONTO – CanWest Global Communications Corp. has been given an extension for closing financing to purchase Alliance Atlantis from Aug. 7 to Aug. 15.
In a news release, CanWest says it and investment banking firm Goldman Sachs need the extra time for a CanWest affiliate to finalize its debt financing through a banking syndicate and complete the documentation for CanWest’s deal to buy Alliance Atlantis shares for $53 cash each.
CanWest and Goldman Sachs gave up on their previous plan to sell high-interest notes to partially fund the $2.3 billion takeover. CanWest says it is “fully committed to closing the arrangement on August 15, 2007” and “it has written commitments from its banking syndicate for bridge financing to complete the arrangement in accordance with the terms of the arrangement agreement. The bridge financing replaces the originally contemplated high yield debt offering.”
According to the Globe and Mail, the bond sale was abandoned because of conditions in the corporate debt market.
