- Southern Cross Media Group (SXL) has successfully negotiated the refinancing of its debt facility for another three years
- This new funding was provided by several major banks and involves a three year $435 million facility and a one year $25 million facility
- This funding will allow the company to repay its drawn debt of $325 million
- The refinancing will be officially completed on January 8 2020
- Southern Cross is down 1.64 per cent today, with shares trading at 90 cents each
Southern Cross Media Group (SXL) has successfully negotiated the refinancing of its syndicated debt facility for another three years.
The new facilities will involve a three-year $435 million facility and a one-year revolving $25 million facility which will be used to repay the company’s drawn debt of $325 million.
“We are extremely pleased with the new facilities which provide funding certainty and flexibility to grow the business,” Chief Financial Officer Nick McKechnie said.
The debt financing has been provided by six major banks including: ANZ, Commonwealth Bank, NAB, Mizuho Bank, Sumitomo Mitsui Banking Corporation and Bank of China.
Southern Cross is pleased to have secured this financing and considers it as a reflection of confidence of the banking community in its strong cash generation.
“We are delighted to have the continuing support of five lenders and welcome Bank of China into the syndicate,” Nick added.
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 June 30 2019 of 1.76 and 13 times respectively.
The refinancing will be officially completed on January 8 2020.
Southern Cross is down 1.64 per cent today, with shares trading at 90 cents each at 12:43 pm AEDT.