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U.K. biggest commercial broadcaster ITV PLC to Raise 120 Million Pounds in Convertible Bonds

By Bettina Padurano for CEOWORLD Magazine Updated:October 13, 2009

ITV PLC (LON:ITV), the U.K.’s biggest commercial broadcaster, said Tuesday it is seeking to raise 120 million pounds ($190 million) through a convertible bond issue to bolster its finances and noted a stabilization in advertising demand.

ITV said it would use the money raised to help it see out the rest of the economic downturn, having been hit by one of the worst ever slumps in advertising revenue.

Chief operating officer John Cresswell said, “The actions we are announcing today continue our work over recent months to strengthen the balance sheet and improve our debt.

“Whilst we are not seeing a recovery in UK television advertising, the trend is improving across the second half and into the fourth quarter.”

The bonds, which will convert into as many as 194 million shares, or about 10 percent of the stock, will have a coupon of 4 percent to 4.75 percent, the London-based company said in a statement. They can be handed over for stock when the shares rise between 32 percent and 37 percent from the market price today, according to the statement.

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