Seven Rejects Oaktree Capital’s Offer To Buy Debt
According to the Sydney Morning Herald, Seven West Media CEO James Warburton turned away Oaktree Capital’s offer to buy some of the company’s debt.
Oaktree Capital, a private equity firm based in the US, recapitalised Nine Entertainment Co back in 2012.
Although the deal may have assisted the broadcaster during the COVID-19 crisis, which has been hard on many media companies, the deal would have reportedly allowed Oaktree Capital to take control had Seven defaulted on anything.
Warburton, who only became CEO in August 2019, has already taken major steps to reduce Seven West Media’s debt, which as of H1 FY20 stood at $541.5 million.
In May Seven West Media sold its Osborne Park Facility to Primewest Media Trust (managed by Primewest Management) for $75 million. Earlier in May, Seven West Media also completed the $40 million sale of Pacific Magazines to Bauer Media.
Last week Seven West Media successfully renegotiated its contract with the AFL for seasons 2020 to 2022, from which it expects to derive $87 million in net benefits.