NZME gains 'headroom' with extension of debt facilities

NZME has secured extended loan facilities. Photo / File

NZME has negotiated terms to extend its existing debt facilities by 18 months.

In an announcement on the NZX this morning, the media company said the current terms of the facilities with Westpac and Commonwealth Bank of Australia would be extended to 1 July 2023.

The deal was originally set to expire on 1 January 2022 and this extension provides the company with the certainty of funding for the next three years.

As with the previous facilities, the new $110m facilities will step down each year to a level of $75m at 31 December 2022.

In 2019 NZME's net debt reduced by $23.6m to $74.7m.

The board said today it continues to focus on debt reduction as part of the company's capital management plan.

"This provides significant headroom over the net debt position of $62m as at 31 May 2020 and aligns with the board's focus on overall debt reduction," NZME said.

The facilities will restrict dividend distributions until July 2021.