Kew Media Group Inc. (“Kew Media” or the “Company”) (TSX:KEW and KEW.WT) today announced that the previously announced new credit facility in favour of its subsidiary, Content Media Corporation International Limited (“Content Media”), has closed.
Under terms of the facility, a syndicate led by SunTrust Bank as administrative agent, with SunTrust Robinson Humphrey, Inc. acting as lead arranger and including The Toronto-Dominion Bank and Bank of Montreal as syndication agents, has provided Content Media with a five-year US$100 million credit facility, with an additional US$25 million accordion feature, which was increased from the previously announced US$75 million due to syndication demand.
On closing of the facility, the Company drew down proceeds to repay Content Media’s previous facilities with JP Morgan and Comerica, which have terminated.
The interest rate on the new credit facility is variable, reflecting either the base rate or LIBOR rate (as applicable) plus the variable margin of 2.25%-2.5% for base rate loans and 3.25%-3.5% for LIBOR loans. The funds are available for Kew Media’s corporate purposes going forward.
“We are pleased to finalize this credit facility,” said Steven Silver, Chief Executive Officer of the Company. “Kew Media has a robust, active pipeline of attractive acquisition targets and the new facility increases our flexibility in negotiating potential transactions.”
This news release may include forward-looking statements. All such statements constitute forward-looking information within the meaning of securities law and are made pursuant to the “safe harbour” provisions of applicable securities laws. Forward-looking statements may include, but are not limited to, statements about anticipated future events or results, and strategies or further actions with respect to the Company, its business operations, financial performance and/or condition. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and are identified by words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions concerning matters that are not historical facts. Such statements are based on current expectations of the Company’s management and inherently involve numerous risks and uncertainties, known and unknown, including economic factors. The forward-looking information contained in this news release is presented for the purpose of assisting readers in understanding the Company’s business and strategic priorities and objectives as at the periods indicated and may not be appropriate for other purposes. A number of risks, uncertainties and other factors may cause actual results to differ materially from the forward-looking statements contained in this news release, including, among other factors, those referenced in the section entitled “Risk Factors” in the Company’s annual information form dated March 28, 2017 for the year ended December 31, 2016, a copy of which is available on the SEDAR website at www.sedar.com under the Company’s profile. Forward-looking statements contained in this news release are not guarantees of future performance and, while forward-looking statements are based on certain assumptions that the Company considers reasonable, actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Company. Readers are cautioned to consider these and other factors carefully when making decisions with respect to the Company and not to place undue reliance on forward-looking statements. Circumstances affecting the Company may change rapidly. Except as may be expressly required by applicable law, Kew Media does not undertake any obligation to update publicly or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
About Kew Media Group Inc.
Kew Media is an independent content company which recently acquired eleven best-in-class production and distribution companies. With primary offices in London, Los Angeles, New York and Toronto, the Kew Media companies develop, produce and distribute multi-platform, mass-audience, returnable content for the global market, across the following genres: factual, reality, lifestyle, drama, comedy, documentary, variety and branded content. Kew Media currently owns over 6,500 hours of premium content sold in over 150 countries on almost every available viewing platform. For more information, please visit the Company’s website at www.kewmedia.com.
Kew Media Group Inc.
Steven Silver, 416-530-2583
Chief Executive Officer & Director