WEST PALM BEACH, Fla. - (Business Wire) ION Media Networks, Inc. (“ION” or “Company”), owner and operator of the ION Television network, today announced that the United States Bankruptcy Court for the Southern District of New York (the “Court”) has granted final approval for the Company’s $150 million debtor-in-possession financing being provided by a majority of its first lien senior secured lenders. After review of various funding proposals received in recent weeks, the Court approved the financing alternative determined by ION as being in the best interest of the Company. The approved financing is being provided by a majority of ION’s first lien lenders, with the opportunity of participation for all first lien holders. In total, holders of approximately 88% of outstanding first lien indebtedness affirmatively support or do not object to the approved financing.
The financing is consistent with the Company’s plan for growing its TV network through general audience appeal based on sustained investment in programming and digital technology. Importantly, among other things, the Company has secured the right to convert this financing into equity at its election, as part of an overall plan the Company intends to complete in the near term.
"The team has been working very hard and diligently on building the company and we are pleased about this vote of confidence from our stakeholders as well as from the Court," said Brandon Burgess, ION’s Chairman and CEO. "Operationally, June was a new high for us in terms of audience ratings, and this funding will allow us to maintain momentum and provide full support for the launch of our fall programming season."
The company also confirmed that it is in active discussions for the acquisition of further content for the 2009/10 television season, including both off-network syndicated content as well as original productions.
ION’s business is focused on capturing growth through improved programming and distribution. Ratings for ION Television showed double digit increases in the first quarter, driven by new programming additions, including NCIS, Boston Legal, Ghost Whisperer, and popular motion pictures. Additional syndicated shows such as Criminal Minds will join the network line-up in the second half of the year, along with several original show premieres including the crime drama Durham County, starring Hugh Dillon.
About ION Media Networks
ION Media Networks, Inc. owns and operates the nation's largest broadcast television station group and ION Television, which reaches over 96 million U.S. television households via its nationwide broadcast television, cable and satellite distribution systems, and features popular TV series and movies from the award-winning libraries of RHI Entertainment, CBS Television, NBC Universal, Sony Pictures Television, Twentieth Television and Warner Bros., among others. Using its digital multicasting capability, the Company has launched several digital TV brands, including qubo, a channel for children focusing on literacy and values, and ION Life, a channel dedicated to active living and personal growth. It also has launched Open Mobile Ventures Corporation, a business unit focused on the research and development of portable, mobile and out-of-home transmission technology using over-the-air digital television spectrum. For more information, visit www.ionmedia.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of ION. Forward-looking statements can be identified by the use of terms such as "expects", "should", "may", "believes", "anticipates", "will", and other future tense and forward-looking terminology. There can be no assurance as to the actual results of the undertakings described herein. These forward-looking statements are made only as of the date of this announcement, and ION undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Abernathy MacGregor
Lex Suvanto, 212-371-5999 (Media)
lex@abmac.com
Adam Miller, 212-371-5999 (Media)
alm@abmac.com
