Corus Entertainment Inc. has negotiated an amendment to a credit agreement with its lenders to give it some increased breathing room as it works to deal with its debt.
The television and radio broadcaster says the maximum total debt to cash flow ratio required under its financial covenants has been increased to 4.75 through to and including Oct.15, with an ability to request advances under the revolving facility to a certain limit.
Under an earlier agreement, the company’s leverage covenant was to decrease to 4.25 times from 4.5 times on Sept. 1.
The amended deal includes 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 as well as other conditions.
Corus co-chief executive and chief financial officer John Gossling called the amendment a prudent step that is part of a more comprehensive plan the company is working through to strengthen its balance sheet and manage liabilities.
Corus has more than $1 billion in outstanding debt, for which material amounts are due in 2027 and 2028.
This report by The Canadian Press was first published Sept. 3, 2024.