What? Canwest borrow at 13.5% to obtain the funds to invest in the Atlantis deal; so how it this loan attached to Atlantis (CW Media)?
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CW Media has a senior secured credit facility, which consists of a $50 million revolving term loan and a US$436 million term loan. The term loan may be repaid at any time without penalty, subject to certain conditions. We may be required to prepay a portion of the term loan facility based on excess cash flows as defined in the credit agreement. This facility is secured by substantially all of the assets of CW Media and, subject to certain limitations, by each of its existing and each subsequently acquired or organized wholly owned subsidiaries.
As at February 28, 2010, CW Media had not drawn any amount under the $50 million revolving term loan and had fully drawn the amount allowed under the term loan. CW Media also has US$338 million senior unsecured notes which bear interest at 13.5% and are due on August 15, 2015.
