AUSTRALIAN MEDIA COMPANIES ASSURE SHAREHOLDERS THAT THEIR DEBT IS IN CONTROL
December 19th 2007 11:13
The tumultuous performance on the Australian Securities Exchange this week in the wake off the US sub prime fallout saw, for example, Centro Properties Group, a major shopping mall owner in the US and Australia hit so hard by the global credit squeeze that yesterday it sought to allay fears it could go bankrupt because of looming debts.
The ensuing fear also saw other companies scramble to assure share holders that their debt was in control and this included two major media companies, Fairfax and Macquarie Communications Infrastructure Group.
Fairfax Media Ltd yesterday informed the ASX that it is aware that there is incorrect information in the market regarding the debt profile of the company and more specifically incorrect assumptions regarding potential refinancing risk. This incorrect information resulted from a report issued by a stockbroker.
It said its current debt position is as follows:
Average maturity of committed facilities – 4.5 years
No refinancing required to be undertaken until mid 2010
Undrawn committed facilities in excess of $450 million available to the company.
Sankar Narayan, chief financial officer said, “Fairfax Media has excellent cash flows and an investment grade balance sheet with no refinancing risk for over two years.”
Macquarie Communications Infrastructure Group told the ASX that “given recent broader market developments” it is reconfirming its debt position as disclosed at its annual general meeting on November 30, 2007:
It said only 3.6 percent of total debt (100 percent consolidated, including exchangeable bonds) matures within the next 2 years, and 14.4 percent within the next 5 years, and proportionately consolidated gearing of 60 percent (based on June 30, 2007 net debt, updated for current asset ownership, its corporate debt drawings, and its closing price on December 18, 2007.)
Its exchangeable bonds are redeemable with its securities at its option.
More than 90 percent of its current outstanding asset debt is hedged for 10 years.
Broadcast Australia has entered into a further $300 million in hedges between 2012 and 2017 since the annual general meeting.
Its distributions are funded from operating cash rather than debt drawings
-- From MediaBlab
The ensuing fear also saw other companies scramble to assure share holders that their debt was in control and this included two major media companies, Fairfax and Macquarie Communications Infrastructure Group.
Fairfax Media Ltd yesterday informed the ASX that it is aware that there is incorrect information in the market regarding the debt profile of the company and more specifically incorrect assumptions regarding potential refinancing risk. This incorrect information resulted from a report issued by a stockbroker.
Average maturity of committed facilities – 4.5 years
No refinancing required to be undertaken until mid 2010
Undrawn committed facilities in excess of $450 million available to the company.
Sankar Narayan, chief financial officer said, “Fairfax Media has excellent cash flows and an investment grade balance sheet with no refinancing risk for over two years.”
Macquarie Communications Infrastructure Group told the ASX that “given recent broader market developments” it is reconfirming its debt position as disclosed at its annual general meeting on November 30, 2007:
It said only 3.6 percent of total debt (100 percent consolidated, including exchangeable bonds) matures within the next 2 years, and 14.4 percent within the next 5 years, and proportionately consolidated gearing of 60 percent (based on June 30, 2007 net debt, updated for current asset ownership, its corporate debt drawings, and its closing price on December 18, 2007.)
More than 90 percent of its current outstanding asset debt is hedged for 10 years.
Broadcast Australia has entered into a further $300 million in hedges between 2012 and 2017 since the annual general meeting.
Its distributions are funded from operating cash rather than debt drawings
-- From MediaBlab
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