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Postmedia obtains consents to extend maturity of outstanding notes
By Rebecca Melvin
Concord, N.H., March 29 – Postmedia Network Canada Corp. announced the results of its Feb. 17 consent solicitation regarding extending the maturity of the company’s first lien notes, second lien notes and asset-based revolving credit facility, according to a company release.
Approval was received from shareholders holding more than 50% of the voting rights attached to the company’s outstanding class C voting shares and class NC variable voting shares.
The consent also pertained to the issuance of 794,630 variable voting shares of Postmedia to holders of the first lien notes in connection with the extension of the notes.
There are currently C$63,472,444 aggregate principal amount of first lien notes outstanding, all of which are held by Canso Investment Counsel Ltd., as portfolio manager for and on behalf of certain accounts that it manages.
There are currently $158,667,005 aggregate principal amount of second lien notes outstanding, a significant portion of which are held by Chatham and its affiliates. There is currently no amount drawn on the ABL Facility.
As previously announced, the company has entered into definitive agreements, subject to customary closing conditions, providing for an extension of the maturity of its 8¼% senior secured notes due 2023, or first lien notes, by about 3.5 years to about Feb. 17, 2027 from July 15, 2023, and the 10¼% second lien senior secured notes due 2024, to Aug. 17, 2027 from Jan. 15, 2024.
The company also has entered into a definitive agreement providing for the extension of the maturity of its asset-based revolving credit facility by three years to Oct. 1, 2025.
In connection with the extension of the maturity of the first lien notes, the company has agreed to issue approximately 794,630 variable voting shares to the holders of the first lien notes at an implied price of C$2.10 as a fee for the extension.
The Don Mills, Ont., holding company publishes paid English-language daily newspapers.
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