Postmedia Network Canada completed a refinancing transaction in respect of its wholly-owned subsidiary, Postmedia Network. The refinancing includes a new three-year asset-based lending facility with an aggregate commitment equal to the lesser of $40 million and a borrowing base, with an advance at closing to be used to repay Postmedia Network’s existing asset-based lending facility of approximately C$14.5 million ($10.71 million) in full and other transaction fees and expenses. Eclipse Business Capital is the agent for the ABL facility.
The refinancing also includes the issuance of approximately $14.9 million of new first lien notes, maturing November 2028, at an interest rate of 10.5% if paid in cash or 11.5% if paid in kind, and the redemption in full of PNI’s existing 8.5% first lien notes and the partial repayment of approximately C$4.7 million ($3.47 million) of unsecured indebtedness with proceeds from the aforementioned issuance of new first lien notes.
