TORONTO — Corus Entertainment Inc. has completed an agreement to amend its “Sixth Amended and Restated Credit Agreement” with its bank group, led by RBC Capital Markets and TD Securities, as co-leads, dated March 18, 2022, as last amended on May 30, 2024.
Pursuant to the Amendment, among other things, the maximum Total Debt to Cash Flow Ratio required under the financial covenants has been increased to 4.75 through to and including October 15, 2024, with ability for the Company to request Advances under the Revolving Facility to a certain limit. There are also requirements to use any Excess Cash to repay outstanding balances on the Revolving Facility and certain terms related to the use of proceeds on asset disposals, the ability to incur certain indebtedness, the ability to designate certain subsidiaries and certain reporting requirements, have also been amended. All terms are as defined in the Credit Facility and amendments thereto.
“Entering into this amendment is a prudent step as part of a more comprehensive plan we are working through to strengthen our balance sheet and manage liabilities,” said John Gossling, Co-Chief Executive Officer and Chief Financial Officer. “Corus is a critical independent player in the Canadian broadcast industry with a portfolio of valuable assets. We continue to take the necessary steps to create and deliver premium content, and engage audiences across Canada.”
