DHX Media plans C$100 million of senior convertibles in refinancing

By Susanna Moon

Chicago, May 10 – DHX Media Ltd. plans to sell C$100 million of senior convertible debentures as part of the financing for its acquisition plans.

DHX Media signed a definitive agreement to acquire the entertainment division of Iconix Brand Group Inc., which includes both an 80% controlling interest in Peanuts and 100% of Strawberry Shortcake, for US$345 million, according to a company announcement.

The remaining 20% interest in Peanuts will continue to be held by members of the family of Charles M. Schulz.

The deal is expected to close June 30 and will be financed using cash on hand, a new debt facility and a private placement of subscription receipts ultimately exchangeable for convertible debentures.

The financing at close also includes a US$30 million revolver and a US$510 million committed term facility.

DHX also plans to redeem its C$225 million of 5 7/8% senior notes due Dec. 2, 2021 as part of the refinancing for the asset purchase.

The company said it is aiming to reduce leverage to 3 times by the end of fiscal 2019.

DHX said it has entered into a commitment agreement with RBC Capital Markets and Jefferies Finance, LLC to provide a fully underwritten debt financing covering the purchase price and also to refinance substantially all of the company's current debt.

DHX is a Halifax, N.S.-based media production, distribution and broadcasting company.

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