CORRECTED-Broadcaster CME reaches financing deal with Time Warner, shares jump
(corrects OIBDA market estimate to a positive figure in last para)
PRAGUE Feb 28 (Reuters) - Loss-making television broadcaster Central European Media Enterprises said on Friday it had reached an agreement with its main shareholder Time Warner to secure the company's financing needs.
"We are seeking to raise up to approximately US$ 545.0 million in new indebtedness through these transactions to enable us to refinance the 2016 Fixed Rate Notes and for general corporate purposes," the company said in a regulatory filing.
"These transactions, if closed, will significantly reduce the amount of cash interest to be paid in the coming years by replacing cash pay indebtedness with non-cash pay indebtedness and will provide sufficient liquidity to fund our operations and relieve pressure on our working capital position," it said.
The transactions will include issuing rights for debt notes and warrants for new shares, it said.
The company's shares jumped after the announcement and traded 25 percent higher at 1300 GMT at 65.8 crowns at the Prague stock exchange.
CME reported loss of $0.72 per share for the fourth quarter on revenue dropping to $237.9 million from $253.34 million last year.
Analysts in a Reuters poll estimated revenues at $206.5 million. Quarterly operating income before depreciation and amortisation (OIBDA) loss of $0.4 million was worse than OIBDA of $9.9 million estimated in the Reuters poll. (Reporting by Robert Muller and Jan Lopatka)
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