Cash Boost For News Corp As Bskyb Refinances

The Age

Friday April 15, 1994

London, Friday.

News Corp will receive 225 million ($A457.3 million) in cash after a 500 million refinancing by its 50per cent owned BSkyB.

The chief financial officer of BSkyB, Mr Richard Brooke, said yesterday that the refinancing reduced BSkyB's shareholder debt to 1.1 billion, including accrued interest.

Other shareholders, Pearson plc and Chargeurs SA, will receive repayments totalling 100 million each, including payments already made, and Granada Group plc will receive a total 75 million, including 12.5 million already paid.

Mr Brooke said Toronto-Dominion Bank and Citibank had agreed to arrange a five-year, 500 million revolving credit facility. The two would underwrite a total of 250 million.

The new facility is non-recourse to shareholders.

Proceeds will be used to partly repay shareholders and to fully repay a 100 million bank loan guaranteed by Pearson, Chargeurs and Granada.

The payments will be on top of 100 million paid out since December 1993. The refinancing, a first step in reducing shareholder debt, meant shareholders could start to realise some of their original investment while retaining equity stakes, Mr Brooke said. He said the bank market was very receptive to BSkyB now.

Two British brokers have raised their valuations on the broadcaster in the past few weeks. Natwest Securities put its worth at 4.5 billion, and BZW at 4.6 billion. -agencies

© 1994 The Age

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