Seven West Media has renegotiated the terms of its $750m debt facilities with its bankers as the media company has faced increased pressure and financial strain amid the global pandemic.
The amended debt facilities provide the company with certainty, with $250 million in currently available liquidity and flexibility to operate through a difficult trading period.
SWM Managing Director and CEO, James Warburton said: “We would like to thank our lenders for working with us to amend our facilities, for their continued confidence in our business and transformation strategy and for providing us funding certainty to enable us to implement that strategy over the next 18 months.”
He added: “While we are focused on achieving the lowest possible cost-base, our energy has been directed to driving audience and winning the content battle in both television and newspapers to deliver ratings, revenue and cash flow.
Seven identified $170m in cost cuts across the company, including in AFL, with most f benefits to be delivered in the 2020 and 2021 financial year.
In turn, Seven’s TV cost based will drop to its lowest level since 2007 following a year-on-year reduction of 20 per cent, and its lowest headcount since 2003.
Seven also said an additional temporary cost savings of $50 million were derived in FY20 to offset the immediate impact of weak advertising markets, with permanent and temporary cost savings continue to be pursued in both businesses.
SWM already secured $150m in asset sales, including the sale of its Pacific Magazines business, Western Australia and Queensland properties and offloading its WA radio assets.
More info is to come when Seven reports its 2020 financial results on August 25.
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