Cash-strapped Canwest Global Communications Corp. said Wednesday it has arranged up to $175 million in new financing.
Canwest 3-month TSX chart The company said some of its current subordinated noteholders have agreed to buy $100 million of senior secured notes, with a face value of $105 million, in two Canwest Global subsidiaries, Canwest Media Inc. and Canwest Television Limited Partnership.
Meanwhile, CIT Business Credit Canada Inc. has agreed to provide a $75-million asset-backed loan to Canwest Media.
Canwest's current noteholders have also agreed to forebearance вЂ" a postponement on repayment of their debt вЂ" until June 15.
"These facilities are intended to provide Canwest with sufficient credit availability to operate its business in the ordinary course as it continues its work to effect a recapitalization transaction," the company said in a release.
Canwest plans to use the funds from the new cash to pay off a current senior line of credit.
Canwest Media now has until June 15 to reach an agreement-in-principle with its noteholders on a recapitalization, and until July 15 to come up with a definitive agreement.
Canwest owed $30.4 million in interest payments on $761 million in outstanding notes, but the company missed that payment back in March, and then got a series of extensions leading up to Wednesday's announcement.
Canwest has a total debt load of about $4 billion.
