Southern Cross eyes refinancing

Southern Cross Media Group (SXL) has launched negotiations with lenders to refinance $725 million worth debt, as the company expects a recent affiliation deal inked with Ten Network Holdings (TEN) puts Southern Cross in a strengthened refinancing position, according to The Australian Financial Review.

The debt, which stems from a $740 million transaction to buy Austereo in 2011 to establish a metropolitan FM network, is due for refinancing in March 2015. But Southern Cross reportedly feels the three-year regional affiliate deal it inked with Ten in July puts it in a stronger negotiating position now than it may find itself in come 2015.

“As the first port of call we will be having discussions with our existing lenders,” Southern Cross chief financial officer Steve Kelly told the AFR.

“There is no pressure on us to do it at this stage but we would like to start discussions sooner rather than later.”

The lenders involved are Australia and New Zealand Banking Group Ltd (ANZ), National Australia Bank (NAB) and Commonwealth Bank of Australia (CBA).

The AFR noted that Southern Cross has previously said it would like to re-finance its loan book by June 2014.