Key Developments For China Cablecom Holdings, Ltd.
China Cablecom Holdings, Ltd. (CABL.O) (Consolidated Issue listed on NASDAQ Capital Market)
China Cablecom Holdings Ltd. Announces Broadband Development Agreement With Hubei Unicom
China Cablecom Holdings Ltd. announced a series of broadband development agreements between seven of its joint venture subsidiaries and Hubei Unicom, a provincial subsidiary of China Unicom, for its broadband development network in the Hubei province. Pursuant to the agreement, both companies will participate in developing broadband capabilities as Hubei General Radio & Television Stations will contribute its content sources to develop 3G mobile phone and internet services in collaboration with Hubei Unicom.
China Cablecom Holdings Ltd. Completes Placement of $33 Million In Senior Secured Notes And Restructuring of Hubei Assets
China Cablecom Holdings Ltd. announced the completion of its offering of $33 million in aggregate principal amount of 12% Senior Secured Notes (the New Notes) due October 2015. Net proceeds from the sale will be used to satisfy the Company's remaining obligations to the Hubei SOE under its amended framework agreement. Investors in the New Notes have been issued Class B Preferred Stock convertible into 23,158,080 ordinary shares, representing approximately 23.3% of the Company's total outstanding shares after a concurrent debt for equity restructuring of its outstanding debt obligations. Chardan Capital Markets was the sole placement agent on this transaction. The New Notes have not been and will not be registered with the Securities and Exchange Commission and may not be offered or sold in the United States absent such registration or an applicable exemption from such requirements.
China Cablecom Holdings Ltd. Announces Debt Restructuring
China Cablecom Holdings Ltd. announced the closing of a comprehensive restructuring of its outstanding debt obligations approved by the Board of Directors, holders of its debt securities and majority holders of its ordinary shares. The restructuring strengthens the Company's balance sheet by reducing the overall principal amount of its long term debt obligations and eliminating cash interest obligations on the new debt securities issued in exchange for its outstanding notes. In connection with the closing, each debt holder waived any and all previously existing defaults on the part of the Company. Under the restructuring package, the Company's existing debt holders exchanged approximately $47 million in current debt obligations for an aggregate total of $23.5 million in new secured and unsecured promissory notes and 65,799,286 newly issued shares of Class A Preferred Stock, each share of which is convertible at the option of the holder into one ordinary share, representing approximately 66.2% of the Company's ordinary shares outstanding after the closing of the restructuring and a concurrent offering of new senior secured notes. Principal on the new notes is subject to cancellation in the event that the Company's ordinary shares close at a daily VWAP greater than $0.85 for 30 consecutive days with daily dollar volume of 500,000 or more. Chardan Capital Markets served as adviser to the Company's debt restructuring.
China Cablecom Holdings Ltd. Announces Management Changes
China Cablecom Holdings Ltd. announced the appointment of Sikan Tong as its new Chief Financial Officer, to replace Colin Sung, the former President and Chief Financial Officer of the Company, who has tendered his resignation, effective March 31, 2009, in order to pursue other professional opportunities. Mr. Tong will assume Mr. Sung's role as Chief Financial Officer on March 31, 2009.
China Cablecom Holdings Ltd. Lowers FY 2008 Earnings Outlook
China Cablecom Holdings Ltd. lowered its fiscal 2008 earnings outlook and expects pro forma EBITDA of $7.0 million and net loss on a GAAP basis of $15.0 million. The net loss for fiscal 2008 is primarily attributable to the non-cash amortization of intangible assets which were acquired in connection with China Cablecom's acquisitions of Binzhou and Hubei and non-cash interest expense associated with the original issue debt discount and deferred financing costs relating to China Cablecom's September 2007 bridge financing and May 2008 convertible note financing.
