Southern Cross Media Group Limited (ASX: SXL) has announced that SCA has successfully negotiated the refinancing of its syndicated debt facility for a further four years.
The new facilities will comprise a 4-year revolving $250m facility and will be used to repay the existing drawn debt of $128m while providing financial flexibility to support the business moving forward. 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. This provides significant headroom for the company compared to the operating covenant ratios on 30 June 2021 of 0.43 times and 15.6 times respectively.
The debt financing has been provided by five banks: Australia and New Zealand Banking Group Limited, National Australia Bank Limited, 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.”
The refinancing will be formally completed on 10 January 2022.
In November, SCA announced that it had taken a minority investment position in US company Frequency, which will power dynamic creative optimisation on the LiSTNR digital audio platform and SCA’s linear broadcast business.
Frequency has been a pioneer in the audio industry, launching the first Creative Management Platform (CMP) specifically built for audio advertising. The Frequency platform utilises data signals to create multiple personalised versions of audio ads in real-time, across live radio streaming, music, podcasts, and FM/DAB broadcast, providing advertisers with an opportunity to speak to their desired audience in a personalised manner across all platforms and devices.