Cyberplex Announces Resolution With Tsavo Media's Lenders
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 09/16/11 -- Cyberplex Inc. (TSX: CX) a leader in online publishing and customer acquisition strategies today announced that its indirect subsidiary, Orion Foundry (Canada) Inc. ("Tsavo Media"), has completed a restructuring of its Credit Agreement with the syndicate of lenders led by American Capital, Ltd. ("American Capital").
Key terms of the restructuring include the following:
As previously disclosed, Cyberplex and Tsavo Media have been engaged in discussions with American Capital to attempt to resolve certain concerns arising in connection with the acquisition of Tsavo Media from American Capital, as well as to restructure Tsavo Media's debt obligations owed to American Capital under its Amended and Restated Credit Agreement dated as of July 7, 2010 (the "Credit Agreement"). Those discussions have resulted in a compromise of certain obligations of Tsavo Media and its direct parent, CX Ontario Holdings Inc., to American Capital and a waiver of certain defaults under the Credit Agreement, as reflected in the First Amendment and Waiver to Amended and Restated Credit Agreement ("Amendment"). In connection with the Amendment, Tsavo Media will make a one-time payment of $4 million to reduce accrued interest and unpaid principal under the Credit Agreement.
This resolution with American Capital is an essential step that will allow Tsavo Media to continue to focus on adapting its business to the changing internet search marketplace. The Company believes that the Amendment reduces pressure on the Tsavo Media business through its flexible repayment terms, reduced interest rate and more suitable repayment period. This increased financial flexibility will be a great benefit to Tsavo Media going forward.
In connection with the Amendment, Miles Arnone will be rejoining the Board of Cyberplex as nominee of American Capital.
"We are pleased with the results of our discussions with American Capital, as well as their commitment to work with Tsavo Media to ensure the business can continue to perform and innovate as it has in the past", said Geoffrey Rotstein, CEO.
"American Capital understands this business and remains an important partner in the success of Tsavo Media" said Ted Hastings, President. "We believe that we now have an arrangement that better reflects this financial partnership and will allow us to focus on the future".
About Cyberplex
Cyberplex Inc. () is a North American leader in online publishing and customer acquisition strategies. The Company, through its subsidiaries, leverages over 300 proprietary web properties and its vast publisher network to efficiently connect advertisers to their most relevant online customers and prospects. By combining high quality publishing initiatives with efficient technology solutions and online marketing expertise, the Company is able to deliver the optimal targeted audience to online advertisers. Cyberplex delivers measurable results that improve advertiser ROI, monetize the value of online properties, and build targeted, loyal online audiences.
Forward-Looking Statements
This news release may contain forward-looking statements that are based on management's current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements. Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
Contacts:
Cyberplex Inc.
David Katz
EVP Corporate Development
416.597.8889
416.597.2345 (FAX)
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Datum: 16.09.2011 - 13:14 Uhr
Sprache: Deutsch
News-ID 66708
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