TORONTO – CanWest Global Communications Corp. is raising $950 million by putting into place new senior secured credit facilities.
More than half of that will be syndicated by the Bank of Nova Scotia with a $250 million revolving facility and a $250 million term loan. Scotia Capital and Citi are leading the placement of a $450 million institutional loan.
CanWest intends to use the proceeds to refinance part of a $1.3 billion short-term loan facility announced this May relating to the proposed privatization of the CanWest MediaWorks Income Fund.
CanWest also intends to refinance the remainder of the short-term facility and also raise funds for general corporate purposes, which may include funding future corporate development initiatives or future distributions to CanWest MediaWorks, through the issuance of up to $700 million of unsecured notes and/or second lien credit facilities shortly following closing of the $1.3 billion of the short-term loan facility.
The financing is subject to customary closing conditions, including completion of the proposed privatization.
