Seven West Media has suspended trading on the Australian Securities Exchange while it attempts to raise capital of $440m to pay off part of Seven’s $1.875bn net debt.
The television network intends to raise the capital by selling new Seven West Media shares at $1.32 each, a discount on the current all time low trading price of $1.62.
A statement from SWM said that earnings before interest and tax remain in line with the organisation’s previous gloomy market update. It said:
“SWM Directors now expect FY12 full year underlying operating EBIT to be approximately $473m, slightly above the previous guidance of $460m to $470m, subject to any year-end review and audit adjustments including, but not limited to, non-cash impairment assessments.”
Seven’s year-on-year ad revenue is estimated to be down about 4-5% in the first quarter of the financial year with the TV market remaining tough.
The annual ratings battle reached the halfway point at the weekend, with Seven narrowly in front in all people, but Nine leading in the key advertiser demographics of 16-39, 18-49 and 25-54.