TORONTO, Sept. 3,
2024 /CNW/ - Corus Entertainment Inc. (TSX:
CJR.B) ("Corus" or the "Company") announced today that it has
completed an agreement to amend (the "Amendment") 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 (the "Credit Facility"). 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."
A copy of the Amendment to the Credit Facility will be filed
under the Company's profile on SEDAR+ at www.sedarplus.ca.
Caution Concerning Forward-Looking Information
This
press release contains forward-looking information and should be
read subject to the following cautionary language:
To the extent any statements made in this press release contain
information that is not historical, these statements are
forward-looking statements and may be forward-looking information
within the meaning of applicable securities laws (collectively,
"forward-looking information"). This forward-looking information
may relate to, among other things, the Company's objectives, goals,
strategies, targets, intentions, plans, estimates and outlook,
including but not limited to anticipated actions regarding or
impacts to the Company's liquidity, leverage target, ability to
repay debt and/or renegotiate existing debt terms; the Company's
strategic plan; anticipated revenue trends; the Company's dividend
policy and the payment of future dividends; the Company's ability
to manage retention and reputation risks; and expectations
regarding financial performance, including capital allocation,
liability management and capital structure strategy and management,
operating costs and tariffs, taxes and fees; and can generally be
identified by the use of words such as "believe", "anticipate",
"expect", "intend", "plan", "will", "may" or the negatives of these
terms and other similar expressions. In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances may be considered forward-looking
information.
Although Corus believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves assumptions, risks and uncertainties and undue reliance
should not be placed on such statements. Certain material factors
or assumptions are applied with respect to the forward-looking
information, including without limitation, factors and assumptions
regarding the general market conditions and general outlook for the
industry including: the impact of recessionary conditions and
continuing supply chain constraints; the potential impact of new
competition and industry mergers and acquisitions; changes to
applicable tax, licensing and regulatory regimes; inflation and
interest rates, stability of the advertising, subscription,
production and distribution markets; changes to key suppliers or
clients; operating and capital costs and tariffs, taxes and fees,
the Company's ability to source, produce or sell desirable content
and the Company's capital and operating results, including results
and impacts of any capital, liability management or related
actions, being consistent with its expectations. Actual results may
differ materially from those expressed or implied in such
information.
Important factors that could cause actual results to differ
materially from these expectations include, among other things: the
Company's ability to attract, retain and manage fluctuations in
advertising revenue; the Company's ability to maintain
relationships with key suppliers and clients and on anticipated
financial terms and conditions; audience acceptance of the
Company's television programs and cable networks; the Company's
ability to manage retention and reputation risks related to its
on-air talent; the Company's ability to recoup production costs;
the availability of tax credits; the availability of expected news,
production and related credits, programs and funding; the existence
of co-production treaties; the Company's ability to compete in any
of the industries in which it does business including with
competitors which may not be regulated in the same way or to the
same degree; the business and strategic opportunities (or lack
thereof) that may be presented to and pursued by the Company;
conditions in the entertainment, information and communications
industries and technological developments therein; changes in laws
or regulations or the interpretation or application of those laws
and regulations including statements, decisions or positions by
applicable regulators including, without limitation, the Canadian
Radio-television and Telecommunications Commission ("CRTC"),
Canadian Heritage and Innovation, Science and Economic Development
Canada ("ISED"); changes to licensing status or conditions;
unanticipated or un-mitigatable programming costs; the Company's
ability to integrate and realize anticipated benefits from its
acquisitions and to effectively manage its growth; the Company's
ability to successfully defend itself against litigation matters
and complaints; failure to meet covenants under the Company's
senior credit facility, senior unsecured notes or other instruments
or facilities; epidemics, pandemics or other public health and
safety crises in Canada and
globally; physical and operational changes to the Company's key
facilities and infrastructure; cybersecurity threats or incidents
to the Company or its key suppliers and vendors; and changes in
accounting standards.
Additional information about these factors and about the
material assumptions underlying any forward-looking information may
be found under the heading "Risks and Uncertainties" in the
Company's Management's Discussion and Analysis for the year ended
August 31, 2023 and under the heading
"Risk Factors" in the Company's Annual Information Form for the
year ended August 31, 2023. Corus
cautions that the foregoing list of important assumptions and
factors that may affect future results is not exhaustive. When
relying on the Company's forward-looking information to make
decisions with respect to Corus, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. Unless otherwise specified, all
forward-looking information in this document speaks as of the date
of this document and may be updated or amended from time to time.
Except as otherwise required by applicable securities laws, Corus
disclaims any intention or obligation to publicly update or revise
any forward-looking information whether as a result of new
information, events or circumstances that arise after the date
thereof or otherwise.
About Corus Entertainment Inc.
Corus Entertainment
Inc. (TSX: CJR.B) is a leading media and content company that
develops and delivers high quality brands and content across
platforms for audiences around the world. Engaging audiences since
1999, the company's portfolio of multimedia offerings encompass 32
specialty television services, 38 radio stations, 15 conventional
television stations, digital and streaming platforms, and
technology and media services. Corus is an internationally-renowned
content creator and distributor through Nelvana, a world class
animation studio expert in all formats and Corus Studios, a
globally recognized producer of hit scripted and unscripted
content. The company also owns full-service social digital agency
so.da, lifestyle entertainment company Kin Canada, and children's
book publishing house, Kids Can Press. Corus' roster of premium
brands includes Global Television, W Network, HGTV Canada, Food
Network Canada, Magnolia Network Canada, The HISTORY®
Channel, Showcase, Adult Swim, National Geographic, Disney Channel
Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and
CFOX, along with streaming platforms STACKTV, TELETOON+, the Global
TV App and Curiouscast. Corus is the domestic advertising
representative and an original content partner for Pluto TV, a
Paramount Company, which is the leading free ad-supported streaming
television (FAST) service. For more information
visit www.corusent.com.
SOURCE Corus Entertainment Inc (IR Group)
