Mediaworks Completes Recapitalisation

MediaWorks NZ Limited is pleased to announce that it has completed a successful recapitalisation. Shareholders have made an increased capital commitment of $70m which has been used to repay senior debt, reset fixed interest rate swaps and provide ongoing liquidity to the Company. This has been accompanied by a comprehensive restructure of the Company’s banking arrangements. Funds advised by Ironbridge contributed $50m of the new capital and they remain the Company’s majority shareholders.

Mr Brent Harman, Chairman of MediaWorks said: “The recapitalisation, combined with the restructure of the Company’s banking arrangements, has placed the Company on a sound financial footing. This, together with the improving ad market conditions, places the Company in an excellent position for 2010 and beyond.”

Mr Kerry McIntosh, NZ Operating Partner of Ironbridge said: “The recapitalisation confirms the commitment of the Ironbridge Funds to MediaWorks. We believe MediaWorks is a high quality business and this was a key driver of our decision to support the business and its senior management team by investing further funds. The improved banking package and lower cash interest costs delivered by the restructure will ensure the business is well placed to take advantage of improved trading conditions.”

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