Corus Entertainment completes recapitalization, names new board
The media company's restructuring reduces debt by over $500 million and sees its old shares delisted from the TSX next week.
Corus Entertainment Inc. has completed its recapitalization plan and appointed a new board of directors to lead the company after a restructuring that reduces its debt by more than $500 million.
The restructuring, approved by the Canadian Radio-television and Telecommunications Commission in September, sees Corus Entertainment Inc. become a wholly owned subsidiary of a new parent company, Corus Entertainment Holdings Inc.
"We are very pleased to complete this recapitalization transaction. Our new capital structure provides a platform that positions Corus for new opportunities and future growth," chief executive officer John Gossling said in a statement.
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The company said the plan significantly reduces debt and strengthens its financial position, cutting annual cash interest costs by up to $40 million and extending debt maturities by five years.
The new board will be chaired by Maryann Turcke, a former president of Bell Media and former chief operating officer of the National Football League.
"We want to build a business that is resilient and will grow into the future," Turcke said in a statement. "Our priority is to continue to strengthen Corus’ leadership position in Canada by delivering news that Canadians trust and entertainment that Canadians love."
The other board members are Erin O'Toole, Stuart Garvie, Jeremy Walker and Gossling.
O'Toole, the former Conservative leader, will lead the human resources and governance committee. "Corus plays a vital role not just in the media industry but also in the fabric of Canadian culture and democracy," O'Toole said in a statement.
Garvie, a senior media and advertising executive, will chair the operating committee. Walker, a former investment banker, will chair the audit committee. Gossling will continue as CEO and interim chief financial officer.
The recapitalization involved lenders exchanging approximately $500 million in debt for a 99 percent ownership interest in the new parent company.
Corus's existing class B non-voting shares are expected to be delisted from the Toronto Stock Exchange at the close of trading on Oct. 9. New common and variable voting shares in Corus Entertainment Holdings Inc. will begin trading on Oct. 13 under the ticker "CORS."
Canso Investment Counsel Ltd., a corporation controlled by John Carswell, is expected to hold approximately 44 percent of the voting interests in the new company, making it the largest shareholder.
The board faces the challenge of turning around a company affected by job cuts and industrywide pressures on traditional broadcasting as it competes with streaming giants.
Corus reported a 16 percent drop in revenue in its third quarter ended May 31 compared with the prior year. It posted a $32.5 million loss attributable to shareholders, compared with a $7 million loss the previous year.
The company cut dozens of media jobs in July and confirmed a further set of layoffs in August.
With files from The Globe and Mail and Global News