Seven West Media (ASX: SWM) has announced that it has refinanced its syndicated debt facility.
The new facility delivers lower cost of funding, more flexible terms and maturity extended to October 2024.
The debt refinancing marks an important milestone in the company’s transformation and reflects the significant achievements at SWM over the past 24 months, including the reduction in net debt by 57% to $240 million and an improvement in the balance sheet position, with the leverage ratio below 1x at the end of the 2021 financial year.
The new facility funding costs are at 2.25% above BBSY, which is half the funding costs under the previous facility. The new facility is also revolving, which will require SWM to hold less cash on balance sheet, further reducing interest costs.
The previous facility’s COVID-era restrictions have also been eased, giving SWM greater flexibility to pursue its strategy. Financial covenants have reverted to those typical for a debt facility to a listed media company and provide ample headroom based on SWM’s most recent financial results. Previous restrictions on capital management have also been eased.
SWM is being advised by Grant Samuel as financial adviser and Ashurst as legal counsel.
This release has been authorised to be given to ASX by the Board of SWM.
