TORONTO -
Canwest Global Communications Corp. (TSX:CGS) has lined up $175 million to reshuffle its senior credit arrangements, and said Wednesday it aims to have a definitive agreement with noteholders by July 15.
Canwest, struggling under $4 billion in debt, said some holders of its eight per cent senior subordinated notes - on which it has failed to pay US$30.4 million in interest due since March 15 - have agreed to pay $100 million for $105 million principal amount of senior notes paying 12 per cent.
In addition, CIT Business Credit Canada Inc. will provide a $75-million senior secured revolving asset-based loan facility.
The money will be used to repay the current lenders under the existing senior credit facility.
The transactions are expected to close Thursday, Canwest said, providing "sufficient credit availability to operate its business in the ordinary course as it continues its work to effect a recapitalization transaction."
The Winnipeg-based TV and newspaper conglomerate said the noteholder committee has extended its forbearance until June 15, by which time an agreement in principle on a long-term recapitalization is to be framed.
A definitive agreement is to be reached on or before July 15.
