ITV bondholders accept exchange offer

Over half of ITV’s bondholders have accepted a bond exchange offer to help reduce the commercial broadcaster’s £730 million debt.

The offer will see ITV bondholders exchange their original bonds for a mixture of cash and new bonds, which will mature at a later date, according to reports.

ITV confirmed that bondholders with 54% stake of the broadcaster’s “Euro500m 2011” bond have accepted an exchange offer, which has halved the level of bond repayment due in 2011.

The broadcaster said the offer “considerably smoothes our debt repayment schedule over the next five years”.

Bondholders who have accepted the deal will now be paid around £80 million cash and will receive new bonds with a value of up to £188 million, paying a coupon of 10%.

ITV also confirmed that it has drawn on a £125 million facility that runs to 2013 but has cancelled its £450 million revolving credit facility, which has never been drawn upon.