Austar Reorganizes Financial Structure
[8/21/07 – Satellite Today] Australian satellite pay-TV operator Austar is returning 300 million Australian dollars ($239.9 million) to shareholders and will reorganize it debt structure as it looks to position itself for growth in the Australian television market, the company announced Aug. 20.
The operator is refinancing and increasing its existing senior debt facilities to 850 million Australian dollars ($679.6 million). The additional facilities, with improved terms over its current facility, provide Austar with the flexibility to implement the capital management strategy approved by shareholders May 31.
“While recent weeks have seen a significant contraction in international debt markets, Austar’s financial and operational strength and great growth prospects have allowed for a further improvement in our senior debt arrangements,” John Porter, Austar’s CEO, said. “We are delighted to have such a great working relationship with our senior banks who have all been very supportive of our business.”