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Renova Media agrees to finance Moscow CableCom for one year, merger is pending
By Lisa Kerner
Charlotte, N.C., May 29 - Renova Media Enterprises Ltd. said it, or one of its affiliates, will provide Moscow CableCom Corp. with an unspecified amount of capital to ensure uninterrupted operations for one year after the date Moscow CableCom files its 10-Q report for the quarter ended March 31 with the Securities and Exchange Commission.
The commitment does not specify on what terms the capital will be provided. Renova Industries, Renova Media's majority shareholder, guaranteed the commitment of Renova Media, according to an amended schedule 13D filing with the SEC.
Any financing or similar commitments are independent of the merger agreement between Renova Media and Moscow CableCom, as well as the $28.5 million facility agreement and the bridge facility agreement.
Renova Media beneficially owns 22,884,017 shares, or 80.4%, of Moscow CableCom's outstanding shares. On Feb. 22, Moscow CableCom agreed to be acquired by Renova Media for $12 per share, or about $152 million, according to a company news release.
The merger agreement includes a $4.5 million termination fee and the transaction is expected to close during the second quarter of 2007.
Concurrently with the agreement, a Renova Media subsidiary, Moscow CableCom and ZAO ComCor-TV entered into a bridge facility agreement for unsecured subordinated debt financing for up to $45 million while the merger is pending.
Moscow CableCom, located in New York, is the parent company of a Russian provider of pay-TV and internet services.
Renova Media Enterprises is the telecommunications arm of Renova Group, a Russian private equity investor.
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