Southern Cross Media Group (ASX:SXL)
has successfully negotiated the refinancing of its syndicated debt facility for a further four years.
The new facilities will comprise a 4-year revolving $250 million facility and will be used to repay the existing drawn debt of $128 million 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 (ASX:ANZ)
, National Australia Bank (ASX:NAB)
, Westpac (ASX:WBC)
, Mizuho Bank, and
Sumitomo Mitsui Banking.
Southern Cross chief financial officer Nick McKechnie said “we are delighted to have the continuing support of four lenders and welcome Westpac Banking Corporation into the syndicate”.
Shares in Southern Cross Media Group (ASX:SXL)
is trading 0.5 per cent lower at $2.01.