Corus Entertainment announces recapitalization transaction
Global News
The deal includes a reduction of total debt and liabilities by more than $500 million and a slashing of annual cash interest by up to $40 million, Corus said in a release.
Corus Entertainment, the parent company of Global News, announced a proposed recapitalization transaction, reaching a deal with its secured lenders, restructuring the company’s $1.1 billion dollars of debt. A move it says will significantly strengthen its financial position. The deal is subject to CRTC and court approval.
According to a company news release, the deal includes a reduction of total debt and liabilities by more than $500 million and a slashing of annual cash interest by up to $40 million.
“The proposed transaction will solidify our financial foundation and position Corus for the long-term,” said John Gossling, Corus Entertainment Chief Executive Officer.
“With significant support from our secured lenders and bondholders, we will be well positioned to continue what we do best – creating and delivering content that entertains and informs millions of Canadians across our expansive suite of leading TV, radio and digital assets, with Global’s exciting fall premiere season now underway,” he said.
Faced with declining advertising revenue, heightened competition from streaming services and a challenging regulatory environment, Corus has undergone a series of cost-cutting measures in recent years, including layoffs.
The company says the new deal will provide the company with more flexibility and liquidity as it continues to seek cost efficiencies while exploring new opportunities in growth areas, such as digital media.
“In addition to right-sizing the balance sheet, we intend to continue executing our strategic plan. This includes focusing on attractive opportunities or partnerships to enhance revenue and value, including through a focus on digital services and products, as well as maintaining discipline over costs and cash management, and finding additional operational efficiencies,” Mr. Gossling said.
