CVC considers refinancing options for Nine Entertainment

Nine, which owns an Australian television network as well as the country's largest magazine publisher, has up to A$2.6 billion in senior debt is due in February 2013 and about A$900 million in mezzanine debt is due in April 2014. According to The Australian, hedge funds including Oaktree and Och-Ziff now hold 20-30% of the senior debt, but Reuters claims the hedge fund share is below 20%.

CVC may opt for a straight debt refinancing or it could try a debt-for-equity swap. Given the current market conditions, a public listing is thought unlikely. It shelved IPO plans for the company earlier this year.

The sources said that Nine's July accounts show EBITDA is 16% ahead of budget, while analysts expect a A$3 billion boost in Australia's TV advertising market, which would support the company's earnings. Nine posted EBITDA of A$414.9 million for the fiscal year ending June, up 16.4% year-on-year. This growth came on the back of stronger earnings from its television, Ticketek, Acer Arena and Ninemsn divisions, while an 18.5% fall income for magazine unit ACP - which accounts for about 30% of total earnings - was the main drag.

CVC first invested in Nine's former company, PBL, in 2006 via a 50-50 joint venture with Consolidated Media Holdings. It committed A$1.8 billion in equity. In late 2007, CVC bought an additional 25% stake in PBL for approximately A$530 million.

In March, Nine jettisoned its 49% stake in CarSales.com for a reported A$565.5 million to institutional investors in order to raise capital.

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• Topics
• Australasia
• Media
• Financing
• CVC Capital Partners