Nine saved: lenders agree to deal
Roar Guru 
Nine Entertainment has been saved from administration and possible collapse, with an agreement on Wednesday afternoon reached between bickering lenders.
Lenders responsible for the $3.2 billion in debt, which had threatened to topple the company, have agreed to take ownership of Nine in replacement of the debt.
“We have a fully capitalised business,” said CEO David Gyngell to reporters.
“All those doomsayers out there are going to have to eat their words. We have never had a more powerful balance sheet.
“We are ready to rock and roll for next year.”
Read more: http://www.smh.com.au/business/nine-saved-as-lenders-agree-to-deal-20121017-27qqr.html#ixzz29WqleczD
Senior lenders, including Oaktree Capital and Apollo Global Management, will own a 95.5 per cent stake in Nine.
Goldman Sachs led ‘Mezzanine’ lenders, who had looked likely to lose the entire $1 billion they had invested in second-ranked debt, will receive a 4.5 per cent stake valued at around $100 million.
As details of the agreement are reported, more clarity will emerge around Nine’s potential dealings with TV rights across sport, including Cricket Australia’s upcoming renewal, with current rights expiring in March 2013. No change is expected to the NRL’s contract with Nine.
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- Nine Entertainment Group, NRL, Rugby League
October 17th 2012 @ 3:23pm
Crosscoder said | October 17th 2012 @ 3:23pm | Report comment
The ARLC media man Brady,indicated a couple of days ago all this tooing and froing was to be expected and indeed was made aware to the people involved in the TV negotiations.Hence the up front figure initiated and hence the optimism all along.
Going into admin would have meant less ability to ask for higher ad charges .
All Tv stations had/have decent debt behind them,including 7 and 10.
9 made $250m but had the debt burden to service.There is no debt now.A clean slate albiet and expensive one for the lenders.They will want to ensure Tv ratings grow,and will no doubt attend to a little bit of cost cutting,or boning or trimming the fat,take your pick.
October 17th 2012 @ 3:25pm
Jay said | October 17th 2012 @ 3:25pm | Report comment
10 cents in the dollar for the mezz funds… paherhaps they think there may be some upside down the track
October 17th 2012 @ 4:34pm
Nostradamus said | October 17th 2012 @ 4:34pm | Report comment
The upside may mean cutting the network to the bone to make some money in a poor ad market…
October 17th 2012 @ 5:41pm
mushi said | October 17th 2012 @ 5:41pm | Report comment
they would be sitting on 0 cents on the dollar in a wind up.
October 17th 2012 @ 6:06pm
Nostradamus said | October 17th 2012 @ 6:06pm | Report comment
With the money lenders in charge and the NRL rights sewn up, the need for all the low rating footy shows may be seen as superfluous esp if Fox does some sort of deal to assist the closure of Nine Footy shows to boost the attractiveness of Fox subscription….
October 17th 2012 @ 7:39pm
Sandy B said | October 17th 2012 @ 7:39pm | Report comment
hopefully they decide to sell on the rugby rights to someone who will actually show them on FTA
October 17th 2012 @ 6:39pm
p.Tah said | October 17th 2012 @ 6:39pm | Report comment
Is this over? I’m not so sure…
October 18th 2012 @ 8:15am
Crosscoder said | October 18th 2012 @ 8:15am | Report comment
Appears so.The clubs got their $500,000 advance each yesterday.That would not have happened ,otherwise.
October 17th 2012 @ 7:51pm
Jason Cave said | October 17th 2012 @ 7:51pm | Report comment
And what will this mean as far the future of cricket on Channel 9 is concerned?
Will Nine have enough money to stave off the most concerted challenge to their TV rights they have held since 1979 with Cricket Australia-possibly their most important TV sports right next to the NRL?
And here’s something to think about as well-will they make a bid for the next AFL FTA TV rights when Channel 7′s contract expire?
October 17th 2012 @ 7:56pm
Oracle said | October 17th 2012 @ 7:56pm | Report comment
Let’s hope they can spare us from Tony Greig during the cricket season
October 17th 2012 @ 8:10pm
Dean - Surry Hills said | October 17th 2012 @ 8:10pm | Report comment
Another Australian icon in foreign control.
There is bugger all left to sell to make the balance sheets of our Nation look good in the interim.
October 17th 2012 @ 10:00pm
yewonk said | October 17th 2012 @ 10:00pm | Report comment
lol same story everywhere. “governments dont rule the world, goldman sachs does”
October 18th 2012 @ 8:17am
Crosscoder said | October 18th 2012 @ 8:17am | Report comment
In this case G Sachs gets about 4.5% of the station.Senior debt lenders the rest.
October 19th 2012 @ 8:02am
Ian Whitchurch said | October 19th 2012 @ 8:02am | Report comment
Goldman got taken to the cleaners on the investment – they are trading about a B worth of debt for maybe $100m in equity, if they are lucky.
Of course, CVC (aka Singapore Inc), who bought the station off James Packer, are the ones with burned fingers up to the elbows.
October 19th 2012 @ 8:51am
yewonk said | October 19th 2012 @ 8:51am | Report comment
my guess is goldmans will clean up when it becomes apparent oaktree cant float long enough for the ad market to turn around and start growing.
October 17th 2012 @ 8:16pm
Boris the Mudcrab said | October 17th 2012 @ 8:16pm | Report comment
Its a game of Cat & Mouse and just as League got shafted in the previous deal, Cricket’s next deal may be off the boil as one less player may be bidding.
October 17th 2012 @ 8:51pm
Swampy said | October 17th 2012 @ 8:51pm | Report comment
Nine didn’t create their own debt. It doesn’t run at a loss. The debt was encumbered upon the network when Packer sold out to a hedge fund. The hedge fund placed the debt it used to purchase nine on to the company books. Nine basically couldn’t produce enough profit to service this debt.
Effectively nine now has no debt (& is therefore in advance of both 7 & 10) and is in a better shape than it’s competition to bid on future programming.
Ten is the network really in strife. High debt, declining share market value and dropping ratings.
Seven is a better structured business and has better ratings. However even Seven carries a billion dollar debt.
Kerry Stokes would be envious of David Gyngell right now.
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October 17th 2012 @ 9:57pm
yewonk said | October 17th 2012 @ 9:57pm | Report comment
this is a good move hedges funds have almost never made bad investments.
October 18th 2012 @ 12:30am
Midfielder said | October 18th 2012 @ 12:30am | Report comment
Interesting if someone wanted to buy nine they would need to get approval from the foreign review board… just saying…
October 18th 2012 @ 11:09am
Nostradamus said | October 18th 2012 @ 11:09am | Report comment
It was in foreign ownership before yeaterdays deal
October 18th 2012 @ 11:59am
Boomshanka said | October 18th 2012 @ 11:59am | Report comment
Question is if the new deal requires further approval? What other interests do Nines new owners also hold?
October 18th 2012 @ 1:40pm
Nostradamus said | October 18th 2012 @ 1:40pm | Report comment
Irrelevant