(Toronto) Corus Entertainment has negotiated an amendment to a credit agreement with its lenders to give it additional breathing room as it works to meet its debt obligations.
The television and radio company said the maximum ratio of total debt to cash flow required under its financial covenants has been increased to 4.75 up to and including October 15, with the possibility of requesting advances under the revolving facility up to a certain limit.
Under a previous agreement, the company’s debt-to-equity ratio was to be reduced from 4.5 to 4.25 times on 1er september.
The amended agreement includes requirements to use any excess cash to repay outstanding balances under the revolving facility and certain conditions relating to the use of proceeds from asset sales and other conditions.
Corus co-CEO and CFO John Gossling cast the amendment as a prudent move that is part of a broader plan the company is implementing to strengthen its balance sheet and manage liabilities.
Corus has more than $1 billion in debt, with significant amounts due in 2027 and 2028.
In June, the company was hit with the loss of rights to key brands including HGTV, Food Network, Cooking Channel, Magnolia Network and OWN, due later this year.