ION Media Networks, secured lenders consider debt-for-equity exchange

By Caroline Salls

Pittsburgh, April 15 - ION Media Networks, Inc. is in discussions with its secured lenders regarding a comprehensive recapitalization of the company's balance sheet, according to a company news release.

ION said it is in discussions with a growing group of lenders and key stakeholders regarding a significant debt-for-equity exchange, which would substantially de-lever its balance sheet and include a new cash investment to advance its long-term growth and expansion plan.

"Our board, management and advisors are focused on the benefits of reducing the company's legacy debt structure and funding its long-term growth potential," chairman and chief executive officer Brandon Burgess said in the release.

"We are encouraged by the receptivity and support from key stakeholders to the idea of restoring our balance sheet to maximize the potential of our unique nationwide TV network and spectrum assets."

According to the release, the stakeholders that are talking with ION have expressed support for the de-leveraging initiatives and for management's vision and operational direction, including continuation of the company's programming, digital and mobile strategies.

The company has hired financial adviser Moelis & Co. and the law firm of Kirkland & Ellis LLP in connection with the proposed recapitalization.

ION is a West Palm Beach, Fla.-based television broadcaster.

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