Postmedia wraps recapitalization transaction, adds new board members

By Marisa Wong

Morgantown, W.Va., Oct. 5 – Postmedia Network Canada Corp. (PNCC) said it completed its previously announced recapitalization transaction. The recapitalization became effective Wednesday upon implementation of a court approved plan of arrangement under the Canada Business Corporations Act, according to a press release.

The transaction’s main components include the following:

• The 8¼% senior secured notes issued by Postmedia Network Inc. (PNI) due August 2017 have been extended by about four years to July 2021 and reduced to C$225 million with a cash repayment of approximately C$78 million at par;

• All $268.6 million of the 12½% senior secured notes issued by PNI due July 2018, together with all interest accrued from and after July 15, have been exchanged for roughly 98% of the total number of voting shares and variable voting shares of PNCC;

• The voting shares and variable voting shares of PNCC have been consolidated on the basis of one post-consolidation variable voting share for every 150 pre-consolidation variable voting shares and one post-consolidation voting share for every 150 pre-consolidation voting shares;

• About $84.4 million of new capital has been invested in the form of new U.S. dollar-denominated second-lien secured notes due July 2023 with no cash interest for the first three years, subject to certain conditions;

• PNCC’s total debt has been reduced by roughly C$307 million, and its annual cash interest expense has been reduced by about C$50 million; and

• Obligations to employees, customers and suppliers were not affected by the recapitalization transaction.

Postmedia also announced on Wednesday that two new members have been added to the boards of PNCC and PNI – David J. Pecker and Daniel Rotstein. Also joining Postmedia’s boards of directors is Mary E. Junck.

In addition, Andrew MacLeod has been appointed as Postmedia’s new chief operating officer.

The Don Mills, Ont., holding company publishes paid English-language daily newspapers.

© 2015 Prospect News.
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