Corus Entertainment announces recapitalization deal, will swap debt for shares

TORONTO – Corus Entertainment Inc. says it has signed a recapitalization deal that will see its debtholders take ownership of the company.

Under the agreement, the radio and television broadcaster says $500 million of its senior notes will be exchanged for 99 per cent of the shares in the restructured company.

Existing Corus shareholders are expected to swap their holdings for shares representing one per cent of the new company.

Corus says the recapitalization deal is expected to reduce its third-party indebtedness and other liabilities of over $500 million and see annual cash interest savings of up to $40 million.

Corus chief executive John Gossling says the proposed deal will solidify the company’s financial foundation and position it for the long-term.

Corus, the company behind Glo