Updated terms allow the broadcaster to carry more debt relative to income through Oct. 15, but any excess cash must go toward repayment
Toronto-based Corus , which owns Global News as well as dozens of television and radio stations across Canada , originally had until Sept. 1 to negotiate some form of debt relief with its lenders. But on Tuesday the company announced it has received an extension from its bank group, which is led by Royal Bank of Canada and Toronto-Dominion Bank, through Oct. 15.
However, the updated terms also require any excess cash Corus may receive to go toward debt repayment. Corus raised $2.3-billion in senior secured credit and a $300-million revolving credit facility at the time, which put its lenders first in line for repayment ahead of shareholders. Catalyst Capital Group Inc. claimed Corus was overpaying by roughly half a billion dollars for Shaw Media and that the Shaw family personally stood to gain between $50-million and $63-million from the transaction. Catalyst tried to convince regulators to delay a shareholder vote on the deal, but the private equity investment firms’ entreaties wereAt that point, by the end of April, 2016, Corus shares were worth roughly $12 each, giving the company a total market value of roughly $2.3-billion.
Debt Company End Ratio Deal Canada Corus Discovery Inc. Global News Royal Bank Of Canada
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