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Confirming speculation, Ten Network Holdings Limited (ASX:TEN) has announced a $230 million capital raising in an effort to boost its revenue and reduce debt.
The media company intends to sell new shares at a discounted price of $0.20 each.
Shareholders will be able to purchase four for every five existing shares held.
The money raised will be combined to pay down debt and fund restructuring costs.
Ten’s Chairman Lachlan Murdoch says a poor execution of its spring programming schedule amid a weak advertising market had impacted its results.
The board of Ten will address shareholders at its annual meeting today, where many expect a downgrade to its profit guidance.
In the 2012 financial year, Ten Network booked a net loss of $4.2 million.
