Montréal, October 25, 2011 - Astral Media Inc. (TSX: ACM.A ACM.B) today announced the signing of a new credit agreement whereby the Company will have access to a $700 million five-year unsecured revolving facility. The new facility also provides for an additional $300 million accordion feature. This new revolving financing will replace the existing $100 million revolving facility, and the proceeds will be used to reimburse the current $525 million Term Loan at maturity in October 2012 and for general corporate purposes.
“We are very pleased to announce that we have secured this new facility at very attractive pricing which will not only result in significant savings in debt service costs but also provide Astral with additional flexibility to continue to execute its strategic plan,” said Robert Fortier, Vice-President, Finance.
In addition, Astral entered into a one-year interest-rate swap agreement on $391 million of its current drawn Term Loan facility at an all-in interest rate of 1.50% as compared to the 1.72% prior to the refinancing. Astral also entered into a further 4-year forward lock interest-rate swap agreement on $391 million of its new credit facility at an estimated all-in rate of 2.59% starting October 29, 2012 and maturing 4 years later.
The credit facility is provided by a syndicate of banks led by National Bank Financial Markets, RBC Capital Markets and BMO Capital Markets.
Founded in 1961, Astral is one of Canada's largest media companies. It operates several of the country's most popular pay and specialty television, radio, out-of-home advertising and digital media properties. Astral plays a central role in community life across the country by offering diverse, rich and vibrant programming that meets the tastes and needs of consumers and advertisers. To learn more about Astral, visit www.astral.com.