ITV attempts to cut debt through bond swap offer
ITV HAS offered holders of its €500m (£425m) fixed rate notes the chance to exchange them for a mix of cash and new notes, as it attempts to reduce debt and refinancing risk.
The broadcaster said it wanted to cut its £730m debt pile by redeeming 30 per cent of the notes, due in 2011, early.
Holders of the bonds, which have a coupon of six per cent, will be offered an exchange at around 30 per cent cash and 70 per cent new euro-denominated bonds, due in 2014 with a coupon of 9 per cent. The exchange will also have the effect of cutting its debt maturities due in the next three years, ITV added.
Britain’s leading free-to-air commercial broadcaster, which has been hit by a downturn in advertising revenues, ruled a rights issue out in April, but has been seeking other options to shore up its balance sheet.
ITV’s shares closed up two per cent yesterday at 37p.