Canadian fixed line operator and DTH provider Shaw Communications has netted a C$1bn five-year revolving credit facility in order to replace a prior facility that was due to mature in May 2012.
The new loan was provided by a syndicate of ten banks with…
Canadian fixed line operator and DTH provider Shaw Communications has netted a C$1bn five-year revolving credit facility in order to replace a prior facility that was due to mature in May 2012.
The new loan was provided by a syndicate of ten banks with Toronto-Dominion Bank as lead arranger and sole bookrunner, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Bank of Nova Scotia as syndication agents and Bank of Tokyo-Mitsubishi as documentation agent.
Shaw said that the facility will be used for general corporate purposes, which is likely to include supporting the company’s ongoing plans to upgrade its digital network infrastructure as well as the forthcoming spring launch of municipal Wi-Fi networks in Edmonton, Calgary and Vancouver.
Shaw has previously announced plans to launch a mobile network in order to help it better compete with rivals Telus and BCE but shelved the strategy in September 2011 due to the prohibitive costs involved in constructing such a network. The company opted instead to focus on deploying municipal Wi-Fi networks.
While Shaw has a significant debt pile of approximately C$5.2bn, the company only has one piece of debt maturing this year, the C$450m of 6.1% senior notes which are due in November 2012. At the end of fiscal 2011, Shaw had cash and cash equivalents of C$360m.
Shaw recently announced its first quarter results for the three months ending 30 November 2011 with revenue up 19% year-on-year to C$1.28bn and operating income up 18% to C$566m.
According to one analyst, this year-on-year improvement was primarily driven by the integration of the CW Media business (now Shaw Media), which it acquired for C$2bn in late 2012, as well as the continued customer growth in the company’s cable and satellite businesses.
Shaw’s satellite segment saw quarterly revenues rise by 1% to C$207m with operating income flat at C$68m. Within this DTH revenues were up 2% year-on-year to C$187m while satellite services revenue fell 5% to C$20m.
Shaw was unable to comment before going to press.
