UK indie producer and distributor DCD Media has cut a deal with its largest lender that sees it swap out £6.93 million (US$11.4 million) of debt for £2.48 million of cash and 7,631,048 shares in the company, valued at 10p apiece.
DCD struck the agreement with Highbridge Capital Management. It will pay the cash amount using a new £3 million loan from Coutts.
DCD has also extended repayment terms on another £2.92 million of debt by three more years.
“This refinancing materially strengthens DCD’s balance sheet and significantly extends the time period for the maturity of the Company’s remaining loan notes,” said John McIntosh, DCD CFO.
He added: “The new bank facility further reinforces the close relationship between DCD and Coutts & Co. and underpins the long term future of the Company as a force in international television production, distribution and the management of intellectual property rights.”