Postmedia Network Canada Corp. Class C · TSX:PNC.A
Postmedia Network Canada Corp. Class C — Corporate Update (July 2016)
15 slides from Postmedia Network Canada Corp. Class C's corporate update, Jul 7, 2016
Slide 1: Investor and Analyst Conference Call
Postmedia Network Canada Corp. Investor and Analyst Conference Call July 7, 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may include information that is “forward-looking information” under applicable Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The Company has tried, where possible
Slide 3: Recapitalization Transaction
RECAPITALIZATION TRANSACTION
Slide 4: Who is Postmedia?
Who is Postmedia? 20 Million monthly reach (digital + print) which is 70% of Canadian adults. Sources: Overall monthly reach figure is derived from internal calculations to factor out duplication Population Base: Vividata Q4 2015, Adults 18+, 28,887,000 Postmedia/SunMedia Print owned & represented r
Slide 5: Recapitalization Transaction
Recapitalization Transaction The Recapitalization Transaction will: • Reduce Postmedia’s outstanding debt by approximately C$307 million • Reduce Postmedia’s annual cash interest costs by approximately C$50 million • C$110 million of new capital invested in the form of new second lien U.S. dollar de
Slide 6: Key Elements of the Proposed Recapitalization
Key Elements of the Proposed Recapitalization Holders of the Existing First Lien Notes will receive their pro rata share(1) of: Holders of • C$78 million repayment, at par Existing • C$225 million New First Lien Notes First Lien Interest will continue to be paid in the ordinary course Notes Ac
Slide 7: New Capital Offering
New Capital Offering Description • Postmedia will raise cash proceeds through a New Capital Offering of C$110 million in New Second Lien Notes (US$ denominated) • Holders of the Existing Second Lien Notes will have the right, to the extent permissible by law, to participate in the New Capital Offeri
Slide 8: Key Terms of the New First Lien Notes
Key Terms of the New First Lien Notes Principal • C$ 225 mm Amount Maturity • July 15, 2021 Interest • 8.25% Rate Security • Same as the First Lien Notes Indenture • Permitted at any time at par (plus accrued and unpaid interest), without make-whole, premium or penalty Redemption • Mandatory 50% of
Slide 9: Key Terms of the New Second Lien Notes
Key Terms of the New Second Lien Notes Principal • US$ equivalent of C$ 115.5 mm Amount Maturity • July 15, 2023 Interest • 10.25% cash interest or 11.25% PIK interest(1) Rate Security • Same as the First Lien Notes Indenture (second priority lien) • Permitted after the New First Lien Notes are repa
Slide 10: Timeline and Process
Timeline and Process • Commence CBCA proceedings Early August 2016 • Mailing of Information Circular, Voting Materials and for holders of Existing Second Lien Notes, information about the New Capital Offering • Meetings of the First Lien Noteholders, Second Lien Late August 2016 Noteholders to appro
Slide 11: Strategy – Looking Ahead
Strategy – Looking Ahead EXTEND THE NEW REVENUE LEGACY RUNWAY STREAMS Local Sales Digital Marketing National Sales Services (DMS) - Search Digital Sales & Social Solutions Circulation Content Marketing Infomart Strategic Media Partnerships 11
Slide 12: Q3 F16 Financial Results
Q3 F16 FINANCIAL RESULTS [P] POSTMEDIA
Slide 13: Q3 Fiscal 2016 Highlights
Q3 Fiscal 2016 Highlights Q3 Operating Results • Excluding the impact of the Sun Acquisition, revenue for the quarter was down 12.9% • Operating income before depreciation, amortization, impairment and restructuring (EBITDA) decreased $10.9 million relative to Q3 F2015. Excluding the recovery of $3.
Slide 14: Q3 Fiscal 2016 – Financial Highlights
Q3 Fiscal 2016 – Financial Highlights (In thousands of Canadian dollars) For the three months ended For the nine months ended May 31, 2016 and 2015 May 31, 2016 and 2015 Variance favourable Q3 F2016 Q3 F2015(1) Variance favourable (unfavourable) Q3 YTD F2016 Q3 YTD F2015(1) (unfavourable) Revenues P
Slide 15: Q3 Fiscal 2016 – Factors Affecting Revenue
Q3 Fiscal 2016 – Factors Affecting Revenue Change vs. Same Period Prior Year for Key Revenue Categories Revenue Category 3 months ended 3 months ended 3 months ended 3 months ended (1) August 31, 2015 November 30, 2015 (1) February 29, 2016 (1) May 31, 2016 (1) Local run-of-press revenue -10% -17% -
Postmedia Network Canada — Corporate Update (July 2016) on 6ix