eye corp sale lmost complete: afr street talk, page-3

This article just out on Street Talk, is similar to the one above. The sale figure is said to be closer to $115m. Also, something to keep an eye on is the upfront figure. The other article I posted a few days ago had Deutsche Bank saying a $90m upfront payment is needed for TEN to be out of trouble re debt covenants.

http://www.afr.com/p/opinion/champ_set_to_pluck_ten_eye_Ja3ZW1DxnhkXAyx8LYs5zI

CHAMP set to pluck Ten’s Eye

Edited by Sarah Thompson and Anthony Macdonald

Ten Network’s on-again, off-again sale of outdoor advertising business Eye Corp is expected to reach a conclusion by Wednesday.

Ten and Eye Corp suitor CHAMP Private Equity were yesterday trying to work out one remaining difference ahead of the October 31 target. The outstanding matter was believed to be a relatively minor point and described by one onlooker as “splitting hairs”.

The sale price was said to be close to $115 million, higher than the $110 million previously reported.

It would be some rare good news for Ten, which is battling weak ratings and revenue, and even had a bomb scare at its Sydney headquarters yesterday.

The key question for Ten investors is how much is received upfront and can be used to pay down debt. That number will be quickly input into spreadsheets to calculate forecast debt-to-earnings and interest cover.

While the deal is understood to be close, expect Ten to tread carefully. The two parties agreed to a $145 million deal in July, before CHAMP terminated the sale when a condition of the deal was not met. CHAMP then restarted talks seeking a lower price.