Central European Media Enterprises Announces New Financing Transaction to Reduce Average Borrowing Cost & Improve Maturity Pr...
April 26 2018 - 12:45AM
Business Wire
Central European Media Enterprises Ltd. (“CME” or the “Company”)
(NASDAQ/Prague Stock Exchange: CETV) today announced that it has
agreed with Time Warner Inc. (“Time Warner”) to reduce the fees
payable to Time Warner as credit guarantor of the Company's
currently outstanding senior term credit facilities, as well as
certain maturity date extensions with the lenders party thereto.
The amendments will be effective on April 26, 2018.
Transaction Highlights
- New pricing grids with significantly
decreased all-in rates.
- Beginning in May 2018, CME's average
cost of borrowing will decrease nearly 200 basis points to about
4.0%.
- Further pricing reductions possible
at lower leverage levels, and after debt is repaid with proceeds
from asset divestitures.
- All-in rate can fall as low as
3.0%.
- Maturity date of existing EUR 235
million term loan extended by two years to November 2021.
- Maturity date of existing EUR 469
million term loan extended to April 2023, five years from
today.
- Increased capacity of existing
revolving credit facility to US$ 75 million and maturity extended
to April 2023.
Michael Del Nin, Co-Chief Executive Officer, commented: "This
new financing package underscores the improved operating
performance of CME and the progress we have made to restore its
financial position. In the span of about three years, the net
leverage ratio has been cut in half, and our run-rate debt service
obligations are less than a third of their recent peak. With this
transaction, we lock in the benefits of those gains and current
market rates, putting in place a capital structure that is designed
to ensure that the vast majority of future cash flows generated by
our operations, more than at any point in the company’s history,
accrues to the benefit of our shareholders."
Christoph Mainusch, Co-Chief Executive Officer, added: "We are
very pleased that the ongoing support of our largest shareholder
recognizes the sustained improvements made in the results of our
operations. We are proud of our market leading networks in each of
our territories, and this transaction ensures that we have a
capital structure in place to remain the best partner for
advertisers in each country."
CME is a media and entertainment company continuing to operate
leading businesses in four Central and Eastern European markets
with an aggregate population of more than 40 million people. CME's
continuing operations broadcast 26 television channels in Bulgaria
(bTV, bTV Cinema, bTV Comedy, bTV Action, bTV Lady and Ring), the
Czech Republic (Nova, Nova 2, Nova Cinema, Nova Sport 1, Nova Sport
2, Nova International, Nova Action and Nova Gold), Romania (PRO TV,
PRO 2, PRO X, PRO GOLD, PRO CINEMA, PRO TV International, MTV
Romania and PRO TV Chisinau) and the Slovak Republic (TV Markíza,
Markíza International, Doma and Dajto). CME is traded on the NASDAQ
Global Select Market and the Prague Stock Exchange under the ticker
symbol “CETV”.
Forward-Looking Statements
This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the safe
harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy or are otherwise beyond
our control and some of which might not even be anticipated.
Forward-looking statements reflect our current views with respect
to future events and because our business is subject to such risks
and uncertainties, actual results, our strategic plan, our
financial position, results of operations and cash flows could
differ materially from those described in or contemplated by the
forward-looking statements.
For additional information, please visit www.cme.net.
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version on businesswire.com: https://www.businesswire.com/news/home/20180425006947/en/
Central European Media EnterprisesMark KobalHead of Investor
Relations+420 242 465 576mark.kobal@cme.net
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