Catalyst Media Group PLC
28 November 2005
28 November 2005
Catalyst Media Group Plc
Catalyst Media Group plc ('CMG') is pleased to announce that the Board of
Satellite Information Systems (Holdings) Ltd ('SIS') has resolved to pay an
interim dividend of £10 million with immediate effect. CMG's share of this
dividend is £2.2 million which will be applied to the early reduction of debt
which was raised to part finance the acquisition of a 20% interest in SIS (the
'Acquisition') in September 2005 for £23 million in cash. This interest was
increased to 22.2% following the buy back of shares by SIS in November 2005.
The Acquisiton was partly financed by the issuance of secured deep discounted
Bonds to Eureka Interactive Fund Ltd for a subscription of £11.75 million.
Whilst the Bonds have a nominal value on maturity of £16.7 million they may be
redeemed at any time at a deep discount which equates to an interest rate of 10%
per annum. Consequently, following application of the funds from this dividend,
the outstanding balance will be reduced from £12.09 million, including accrued
interest, to £9.9 million.
SIS has, in the recent past, had a policy of declaring a substantial dividend
every four years. The Directors of CMG expect the next dividend in line with
this policy to be declared before the end of 2006.
Since the Acquisition, CMG has comprehensively restructured and the Group is now
profitable on a monthly basis.
END
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