Postmedia Network Canada Corp. has received a temporary waiver of payments related to its first-lien debt.
The cash interest on the 8.25 per cent first-lien notes, which mature in July 2023, was to be paid April 30. Instead, Postmedia will issue additional first-lien notes, the company said in a statement Tuesday afternoon.
Postmedia’s mandatory excess cash flow redemption, due after the company’s second quarter, has been waived in full. The company’s financial year begins Sept. 1 and ends Aug. 31.
“We, like countless other businesses large and small, are taking these proactive steps to ensure maximum flexibility while we navigate this crisis,” said Postmedia president and CEO Andrew MacLeod in the statement.
“We have seen the mandated shutdown of huge portions of the Canadian economy, which is having widespread impact on all industries, including media,” MacLeod said. “We intend to continue to take necessary steps to successfully manage our business in this unprecedented environment.”
Postmedia is a network of more than 140 brands across print, online and mobile platforms, including the National Post, Ottawa Citizen, Montreal Gazette, Toronto Sun and Edmonton Journal.