TIDMINM
RNS Number : 5412Z
Independent News & Media PLC
23 September 2009
Independent News & Media PLC
Update on Restructuring Discussions
Dublin/London - 23rd September 2009: Independent News & Media PLC ("INM" or "the
Company") notes the recent widespread media commentary on the expected outcome
to its ongoing restructuring discussions with its syndicate of senior lenders
("Lenders") and with an ad hoc committee of holders of the EUR200 million 5.75%
guaranteed bonds ("Bonds).
The Company confirms that its discussions with Lenders and holders of the Bonds
have advanced significantly, although details of any consensual restructuring
remain to be finalised and require the ultimate agreement of all parties
(including that of the INM Board).
However, the Company confirms, that in line with its objective of pursuing a
consensual financial restructuring which balances the rights of , and preserves
value for, all stakeholders, the outcome of the restructuring discussions with
Lenders and the holders of the Bonds is likely to include:
* a significant extension on maturities of available senior debt facilities;
* other modifications to senior debt facility terms, including revised financial
covenants to provide adequate headroom accommodating prevailing trading
conditions and expectations;
* an equitisation of an amount of the Bond claim providing Bondholders with an
equity interest in the enlarged issued share capital, in line with that which is
now being referred to in media reports; and
* a subsequent rights issue at a rights price of EUR0.05, providing existing INM
shareholders the opportunity to participate in the capital restructuring at an
attractive price.
This assumes no other viable proposals are advanced by Lenders or the Bonds.
The Company believes that a successful outcome to the restructuring discussions
along these lines will provide INM with a capital structure that gives the
Company suitable time and space to restore equity value and optimally position
the business for growth. Assuming a successful conclusion and implementation of
this restructuring, INM will achieve a significant reduction in net debt (the
combination of the equitisation of the Bonds, the rights issue and the Group's
previously-announced disposal programme resulting in deleveraging of
approximately EUR350 million, with further debt reduction anticipated in 2010),
increased liquidity and a stabilised financial position.
With economic fundamentals expected to recover over the medium-term, INM's
market-leading assets are very well positioned to benefit from any cyclical
economic recovery. The Company's strong operating leverage, as a result of
significant operating cost reductions over the past 2 years and continuing
business process improvements, should facilitate incremental revenue growth
substantially translating into a much improved operating profit performance.
The Company believes that this consensual restructuring proposal provides a
materially better outcome for all stakeholders than any other alternative.
Further detail on the proposals, the conditions precedent, and the expected
milestones and timetable to implementation will be announced if and when, the
proposals are agreed.
For further information, please contact:
+--------------------------+--------------------+------------+
| Independent News & Media | | |
| PLC | | |
| Gavin O'Reilly | | |
| Chief Executive | | |
| Donal Buggy | | |
| Finance Director | | |
| Tel: + 353 1 4663200 | | |
+--------------------------+--------------------+------------+
| Media | Rory Godson/ Paul | Investors |
| Pat Walsh | Durman | and |
| Murray Consultants | Powerscourt | Analysts |
| (Dublin) | (London) | Mark |
| Tel: +353 1 498 0300 | Tel: +44 20 7250 | Kenny/ |
| | 1446 | Jonathan |
| | | Neilan |
| | | K Capital |
| | | Source |
| | | (Dublin) |
| | | Tel: +353 |
| | | 1 631 5500 |
| | | |
+--------------------------+--------------------+------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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