COMMERCIAL television broadcaster Ten Network Holdings Ltd plans to raise $138 million to pay back debt.
The media company has entered a trading halt, and announced it would offer 120 million new shares at $1.15 per share. The rate is an 8.4 per cent discount on its closing price yesterday, at $1.255.
In a statement to the securities exchange, Ten said: "Ten Networks Holdings Ltd (Ten Holdings) today provided an update on business performance, confirming all earnings guidance provided at the time of the 3Q (third quarter) results announcement and reiterating previous guidance that it will be within the requirements of its banking covenants at the end of the financial year on 31 August 2009."
The company said it intends to use the proceeds to pay down debts and enhance its balance sheet flexibility.
Ten told the ASX in June that it expects its full year TV costs to be down on 2008, and that drawn debt would be about $600 million at the end of the financial year on 31 August 2009.
The New Lawyer has spoken to the law firm that acted for the issuers (Ten Network), but the firm is unable to speak on the record about the deal until further notice.
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