SCA refinances debt facilities worth $250m
Southern Cross Austereo (SCA) has made an ASX announcement that it has renegotiated its syndicated debt facility for a further four years.
The new facilities will comprise a four-year revolving $250 million facility and will be used to repay the existing drawn debt of $128 million.
The debt financing has been provided by five banks: Australia and New Zealand Banking Group Limited (ANZ), National Australia Bank Limited (NAB), Westpac Banking Corporation, Mizuho Bank Ltd and Sumitomo Mitsui Banking Corporation.
SCA CFO Nick McKechnie said: “We are extremely pleased with the new facilities which provide funding certainty for the next four years and flexibility to grow the business. The transaction reflects the confidence of the banking group in our strong cash generation and in the quality asset base of SCA. We are delighted to have the continuing support of four lenders and welcome Westpac Banking Corporation into the syndicate.”
Key financial covenants are unchanged, being the Leverage Ratio (Net Debt to EBITDA) at a maximum 3.5 times, and minimum interest cover of 3.0 times EBITDA.
The refinancing is expected to be formally completed on 10 January 2022.
In December 2019, SCA refinanced its debt facility, at that time for a three-year revolving $435 million facility, and a one year revolving $25 million facility, to be used to repay the company’s existing drawn debt of $325 million.
Seven West Media has also recently refinanced its own debt facility, back in October.
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