CanWest MediaWorks takes big loan

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CALGARY, Alberta -- Canadian broadcaster CanWest Global Communications Corp. on Thursday said that subsidiary CanWest MediaWorks LP had secured CAN$950 million ($887 million) in new debt to refinance a CAN$1.3 billion ($1.21 billion) short-term loan facility.

MediaWorks secured a CAN$250 million ($233 million) revolving facility and a CAN$250 million term loan ($233 million) from a syndicate led by the Bank of Nova Scotia along with a CAN$450 million ($420.5 million) institutional loan from Scotia Capital and Citi.

The proceeds of the new financing will be used to refinance a CAN$1.3 billion short-term loan facility announced May 25.

To fully refinance the short-term credit facility, CanWest MediaWorks has proposed issuing CAN$700 million ($654.2 million) in unsecured notes.

The latest refinancing from CanWest Global comes on the heels of its Canadian broadcast arm receiving regulatory permission to expand into the Calgary and Edmonton markets.

CanWest Global also will launch the E! network in Canada in September and will acquire rival broadcaster Alliance Atlantis Communications Inc., pending regulatory approval.

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