TORONTO — Postmedia Network Canada Corp. says it will have more time to pay down debt and grow its digital business after striking a refinancing deal with Ontario-based portfolio manager Canso Investment Counsel Ltd.
The Toronto-based company that owns the National Post and other newspapers across Canada says the deal will result in issuing $95.2 million in new first-lien notes that mature in July 2023, two years later than the instruments they replace.
Meanwhile, maturity of the company’s second-lien notes is being extended by six months to Jan. 15, 2024.
CEO Andrew MacLeod says in a statement the agreements mean Postmedia won’t have to worry about note obligations coming due for four years.
Last month, Postmedia reported a net loss of about $7.7 million on revenue of $157 million for the quarter ended May 31.
The revenue figure included $32.9 million from digital businesses, up 10 per cent from a year earlier, print advertising revenue of $64.8 million, down 17.6 per cent, and print circulation revenue of $51.4 million, off by 6.3 per cent.
“Since our October 2016 recapitalization we have paid down over $130 million of first lien debt (nearly 60 per cent of the total outstanding) while decreasing costs and achieving double-digit growth in digital advertising revenue for 10 consecutive quarters. Our strategy is working,” said MacLeod.
Companies in this story: (TSX:PNC.A, TSX:PNC.B)
The Canadian Press