TORONTO – Cyberplex Inc. (TSX:CX) a Toronto-based online publisher, says its Tsavo Media unit has restructured a credit deal with a group of lenders led by American Capital Ltd.
The deal will see the amount owed cut by $2.5 million and the interest rate reduced and repayment period extended, the company said Friday.
In return,Tsavo Media will make a one-time payment of $4 million.
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Cyberplex shares were halted on the TSX pending the news.
The credit deal will allow Tsavo Media to focus on adapting its business to the changing internet search marketplace, Cyberplex said.
“We are pleased with the results of our discussions with American Capital, as well as their commitment to work with Tsavo Media to ensure the business can continue to perform and innovate as it has in the past”, said CEO Geoffrey Rotstein.
“American Capital understands this business and remains an important partner in the success of Tsavo Media” said Cyberplex president Ted Hastings.
“We believe that we now have an arrangement that better reflects this financial partnership and will allow us to focus on the future”.
Cyberplex provides technology and Internet services to help connect advertisers to online customers and prospects.
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