Time Warner Increases CME Investment

HAMILTON: Time Warner is providing Central European Media Enterprises (CME) with a $300 million loan and increasing its stake to 40 percent, all in a bid to lower the broadcaster’s debt.

Time Warner and Ronald Lauder are loaning the company the money to pay debts coming due starting in 2013. The two will pay around $7.51 for 11.5 million of CME’s Class A shares. CME plans to repay the loans with the proceeds from the equity subscriptions. If this takes longer than 180 days, CME has the option to sell to Time Warner and Time Warner has the right to acquired additional shares paid for with the outstanding loans. This could increase Time Warner’s ownership in the company up to 49.9 percent.

Adrian Sarbu, the president and CEO of CME, commented: "As promised, we are taking significant steps to deleverage. Support from our major shareholders shows their confidence in the future of our company."