Private equity group pumps $50 million more into the TV3 and RadioLive broadcaster - keeping a hostile takeover at bay, and allowing it to pay off a controversial $43 million government loan.
MediaWorks' private equity owner Ironbridge has stitched together a $50 million top-up and debt restructure that will keep the broadcaster in its hands - for now.
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Ironbridge said late today it had reached an agreement with the majority of lenders on a recapitalisation and restructuring of GR Media, the holding company for MediaWorks, which includes TV3, C4, FOUR, and a radio station network including RadioLive, RadioSport, The Rock, Kiwi FM and The Breeze among its properties.
The recapitalisation will provide funds for day-to-day expenses such as local programming, promotion and sales, and will reduce debt levels and the cost of servicing debt, provide a liquidity buffer.
The deal will also allow Ironbridge to repay the $30 million remaining on a controversial $43.3 million government loan to cover deferred radio spectrum licence payments, Ironbridge said.
February 9: Senior MediaWorks executives have been shed from the holding company of the contested broadcaster as owner Ironbridge digs in to fend off a hostile takeover.
According to the Companies Office MediaWorks group managing director Sussan Tuner resigned on January 1 from the broadcasters’ holding and capital-structure companies GR Media Investments, GR Media Capital and GR Media Holdings.
Peter Crossan, MediaWorks’ chief financial officer, also resigned from GR Media Holdings at the same time.
The pair remain directors of MediaWorks NZ, the company at the coal-face of the broadcaster.
A spokesman for Ironbridge said the resignations had no effect on the pair’s management roles at the company but declined to explain the moves.
GR Media Holdings is the debt-holding vehicle Ironbridge uses to own and finance MediaWorks, and the bank debt owed by the company has become the target of much-larger rival private equity-firm TPG Capital.
TPG announced late last year it had bought 20% of the first-ranking debt owed by GR Media Holdings, and were seeking to buy the remainder to effect a back-door takeover of the indebted media company.
The resignations consolidate Ironbridge's control of the contested holding companies, leaving Kerry McIntosh, Michael Hill and Phillip Harman as sole directors.
Sources within TPG and Ironbridge have indicated the takeover tussle could take some time to resolve.
