Central European Media to retire €250.8 million loan via asset sale

By Susanna Moon

Chicago, July 10 – Central European Media Enterprises Ltd. plans to repay its €250.8 million term loan due 2018 using proceeds of an asset sale.

Central European has agreed to sell its leading broadcast operations in Croatia and Slovenia to Slovenia Broadband Sarl, a subsidiary of United Group BV, for €230 million, according to a company announcement.

The deal is expected to close by year’s end.

The paydown reduces the company’s net leverage ratio to 5.1 times from 6.3 times based on its results from the period ended March 31, the company noted.

The company said its average borrowing cost is expected to drop 275 basis points to 4.5% on repayment of the 2018 term loan.

The transaction “moves us significantly closer to our long-held goal of establishing a more appropriate leverage profile for our operations,” Michael Del Nin, co-chief executive officer, said in the press release.

“Once closed, the cash proceeds from this sale will greatly accelerate our plans for debt reduction, lowering our net leverage ratio by about one turn, cutting our current average borrowing rate by more than a third and helping us to save over $30 million in annual interest costs.”

Central European Media is a media and entertainment company operating in six Central and Eastern European markets and based in Hamilton, Bermuda.

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