CVC Capital Partners has agreed to put AUS$335 million ($217.5 million) into ailing Australian media company PBL Media.PBL Media has proposed a AUS$445 million ($289 million) recapitalisation package to its banks in order to keep the business afloat.
The company hopes to generate the remaining AUS$110 million ($71.4 million) via the cancellation of existing facilities.
“The recapitalisation proposal already has the support of 31% and 80% of the senior and mezzanine lenders, respectively,” says Ian Law, chief executive, PBL Media. “Discussions are now being undertaken with the other members of the banking syndicate. This process will take another three to four weeks to complete. The aim is to have the recapitalisation in place by Christmas.”
Consolidated Media Holdings, a 25% shareholder in PBL Media, are not going to contribute further equity into the company. As a result, they will be diluted through the issue of new capital.
PBL fully owns Nine Network Australia, ACP Magazines, Ticketek and Acer Arena. It has majority interests in carsales.com, NBN Television, a 50% interest in ninemsn, and interests in Mathletics and the Australian News Channel (Sky News).
D.C.