Postmedia Network Acquires Publishing Business of Canwest for $1.1 Billion
|Areas||Banking and Finance Law, Corporate Finance and Securities, Corporate Restructuring, Employment and Labour, Pensions, Private Equity, Tax|
Goodmans represented Postmedia Network Canada Corp., the parent of Postmedia Network Inc., in connection with Postmedia Network Inc. and Postmedia Network Canada Corp.’s acquisition of the assets and business of Canwest LP and certain of its affiliates, including the Shares of National Post Inc., under a sale proceeding conducted pursuant to the Companies’ Creditors Arrangement Act. The transaction makes Postmedia Canada’s largest publisher of paid English
-language daily newspapers along with a stable of community-based publications and online assets.
The aggregate enterprise value of the assets was estimated to be $1.1 billion. Postmedia Network Inc., the principal operating subsidiary of the Company, secured approximately US$935 million in the aggregate of committed financing to fund the transaction, consisting of C$250 million in equity and approximately US$685 million in senior funded debt secured by all the assets of the Postmedia and its subsidiaries.