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Ten secures new revolving cash facility

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SYDNEY, Feb 22 AAP

February 22 2013, 6:10PM

Television broadcaster Ten Network Holdings has received an $80 million cash advance from the Commonwealth Bank of Australia.

"We thank our current banking partners for their support in relation to the existing loan facility and welcome the CBA (Commonwealth Bank) in agreeing to partner with Ten in this new loan facility," Ten group chief financial officer Paul Anderson said in a statement on Friday.

The new cash advance facility is to replace the existing $350 million facility that was due to expire in February 2014.

The new facility will expire in November 2015 and complements Ten's two private debt placements in the US, which will be repaid on February 25 from the proceeds of a recent capital raising, and $150 million which expires in December 2015.

Although the Commonwealth Bank is the sole lender under the new facility, the agreement allows for additional lenders to provide up to a further $40 million in additional loan capacity.

The December capital raising for $230 million was at 20 cents a share.

In June last year Ten undertook a $200 million capital raising at 51 cents per share, mainly to strengthen the balance sheet, with a small amount of the raising set aside to provide funds for investment in programming.

In October Ten posted a $12.9 million full year loss and announced a round of redundancies as it battled poor advertising markets and struggled to hold on to viewers.

Ten on Friday was up one cent at 29.5 cents.