Corus Entertainment says it’s continuing to take steps to better manage its liabilities, announcing Monday it has once again amended its credit agreement in the face of more than $1 billion in outstanding debt.
The company says with its bank group, led by RBC Capital Markets and TD Securities, its maximum total debt to cash flow ratio has been increased to 4.75 through to mid-October, with ability for the company to request advances under the revolving facility to a certain limit.
The agreement also includes requirements to use any excess cash to repay outstanding balances on the revolving facility and terms related to the use of proceeds on asset disposals, among other amendments.
“Entering into this amendment is a prudent step as part of a more comprehensive plan we are working through to strengthen our balance sheet and manage liabilities,” said John Gossling, Co-Chief Executive Officer and Chief Financial Officer, in a release. “Corus is a critical independent player in the Canadian broadcast industry with a portfolio of valuable assets. We continue to take the necessary steps to create and deliver premium content, and engage audiences across Canada.”
The company has been undertaking a review of all operational efficiencies that included a workforce reduction of 800 positions or 25% of full-time staff by the end of August, a process begun at the start of fiscal 2023.
Corus shares were trading up slightly on the TSX on Monday afternoon at 14 cents.
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