Canwest: sale of broadcasting assets to Shaw Communications approved

By Lisa Kerner

Charlotte, N.C., Oct. 22 - Canwest Global Communications Corp.'s C$2 billion sale of broadcasting assets to Shaw Communications Inc. is expected to close on Oct. 27 after the Canadian Radio-television and Telecommunications Commission approved the deal on Friday.

Included in the acquisition are Canwest's over-the-air and specialty television businesses, including all of Canwest's equity interests in CW Investments Co., the Canwest subsidiary, which owns a portfolio of specialty television channels acquired from Alliance Atlantis Communications Inc. in 2007, a Shaw news release said.

The acquisition price includes approximately C$815 million of debt outstanding at the CW Media Group level, comprising a term loan of approximately $400 million, liabilities under related currency swap agreements and $335 million in respect of 13.5% senior notes.

Shaw has secured an additional C$500 million credit facility from a syndicate of Canadian banks to provide additional liquidity and, together with its existing credit facility, Shaw has C$1.5 billion of available credit to complete the transaction and to refinance the outstanding CW Media Group $400 million term loan.

At closing, Shaw is required to fund total payments of approximately C$500 million, which will be made to pay Canwest bondholders, other affected creditors of Canwest and Canwest shareholders, as well as to pay other transaction costs.

Shaw is a diversified communications company based in Calgary, Alta.

Canwest Global is a Winnipeg, Man.-based media company that filed for Chapter 15 bankruptcy on Oct. 6, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 15 case number is 09-15994.

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