Southern Cross Media Group Limited (ASX: SXL) has successfully negotiated the refinancing of its syndicated debt facility for a further three years.
SCA advised shareholders today that
The new facilities will comprise a 3-year revolving $435m facility and a 1 year revolving $25 million facility and will be used to repay the existing drawn debt of $325m and provide financial flexibility to support the business going forward.
Financial covenants will remain at a maximum 3.5 times Net Debt: EBITDA and minimum interest cover of 3.0 times, with significant headroom compared to the ratios at 30 June 2019 of 1.76 times and 13.0 times respectively.
The debt financing has been provided by six banks: Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, Mizuho Bank Ltd, Sumitomo Mitsui Banking Corporation, and Bank of China Limited.
Southern Cross Austereo CFO Nick McKechnie said: “We are extremely pleased with the new facilities which provide funding certainty and flexibility to grow the business. The transaction reflects the confidence of the banking community in our strong cash generation and in the quality asset base of SCA. We are delighted to have the continuing support of five lenders and welcome Bank of China into the syndicate.”
The refinancing will be formally completed on 8 January 2020.
I find it rather dangerous that SCM are now being partly supported by 2 overseas banks. I think that this is highly dangerous to our broadcasting rules & integrity. Also to have this much debt and still be operational would be scary to me if I was a shareholder or a director. Just saying.