Corus Entertainment gets breathing room from lenders in amended debt deal

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TORONTO - Corus Entertainment Inc. has negotiated an amendment to a credit agreement with its lenders to give it some increased breathing room as it works to deal with its debt.

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Hey there, time traveller!
This article was published 03/09/2024 (461 days ago), so information in it may no longer be current.

TORONTO – Corus Entertainment Inc. has negotiated an amendment to a credit agreement with its lenders to give it some increased breathing room as it works to deal with its debt.

The television and radio broadcaster says the maximum total debt to cash flow ratio required under its financial covenants has been increased to 4.75 through to and including Oct.15, with an ability to request advances under the revolving facility to a certain limit.

Under an earlier agreement, the company’s leverage covenant was to decrease to 4.25 times from 4.5 times on Sept. 1.

Corus Entertainment Inc. has negotiated an amendment to a credit agreement with its lenders to give it some increased breathing room as it works to deal with its debt. The Corus logo at Corus Quay in Toronto is shown on Friday, June 22, 2018. THE CANADIAN PRESS/ Tijana Martin
Corus Entertainment Inc. has negotiated an amendment to a credit agreement with its lenders to give it some increased breathing room as it works to deal with its debt. The Corus logo at Corus Quay in Toronto is shown on Friday, June 22, 2018. THE CANADIAN PRESS/ Tijana Martin

The amended deal includes requirements to use any excess cash to repay outstanding balances on the revolving facility and certain terms related to the use of proceeds on asset disposals as well as other conditions.

Corus co-chief executive and chief financial officer John Gossling called the amendment a prudent step that is part of a more comprehensive plan the company is working through to strengthen its balance sheet and manage liabilities.

Corus has more than $1 billion in outstanding debt, for which material amounts are due in 2027 and 2028.

This report by The Canadian Press was first published Sept. 3, 2024.

Companies in this story: (TSX:CJR.B)

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