Southern Cross Media Group Limited (ASX: SXL) announces it has successfully negotiated the refinancing of its syndicated debt facility for a further four years.
The new facilities will comprise a 4-year revolving $250m facility and will be used to repay the existing drawn debt of $128m while providing financial flexibility to support the business moving forward. Key financial covenants are unchanged, being the Leverage Ratio (Net Debt to EBITDA) at a maximum 3.5 times, and minimum interest cover of 3.0 times EBITDA. This provides significant headroom for the company compared to the operating covenant ratios on 30 June 2021 of 0.43 times and 15.6 times respectively.
The debt financing has been provided by five banks: Australia and New Zealand Banking Group Limited, National Australia Bank Limited, Westpac Banking Corporation, Mizuho Bank Ltd and Sumitomo Mitsui Banking Corporation.
SCA CFO Nick McKechnie said: “We are extremely pleased with the new facilities which provide funding certainty for the next four years and flexibility to grow the business. The transaction reflects the confidence of the banking group in our strong cash generation and in the quality asset base of SCA. We are delighted to have the continuing support of four lenders and welcome Westpac Banking Corporation into the syndicate.”
The refinancing was formally completed on 10 January 2022.