Corus recapitalizes in order to strengthen financial position

Corus Entertainment Inc. announced a recapitalization transaction on Monday, Nov. 3. The move comes just days after it revealed its fourth quarter and fiscal year-end results. The move is expected to reduce the firm's outstanding indebtedness and improve its capital structure and liquidity. “The proposed transaction will solidify our financial foundation and position Corus for the long-term,” company CEO John Gossling was quoted as saying in a statement. “With significant support from our secured lenders and bondholders, we will be well positioned to continue what we do best – creating and delivering content.” If approved by creditors, the courts, and the Toronto Stock Exchange (TSE), the measure would feature a total reduction of third-party indebtedness and other liabilities of over $500 million; generate cash interest savings of up to $40 million; continued access to its senior secured revolving credit facility to support operations; and extended relief of financial covenants beyond the end of the calendar year. The news release suggested the CRTC may have a role to play in approving the transaction. While Corus did not immediately respond to a request for more details on what approvals are required, the commission told The Wire Report it would only take action if there was a change in control of the company. Corus will create a new firm, called NewCo, which will administer the refinanced company. Certain lenders will be granted warrants to buy NewCo shares that will be capped at 10 per cent of the stock. NewCo will trade on the TSE. National Bank of Canada analyst Adam Shine was pessimistic about the move. “We previously noted that it was hard for us to ascribe any remaining value for equity holders, so our target reflects notional value of $0.01/share,” he wrote in a note Monday. Corus is not the only tech company changing its status in recent days. Telus Corp. announced on Friday Oct. 31 that it has completed its privatization of Telus Digital. It has acquired all outstanding stock for US$4.50 a share and/or Telus common shares. This will cost the company around US$539 million. The Telus deal was approved by shareholders at a special meeting held Monday, Oct. 27. The Supreme Court of British Columbia issued a final order allowing the privatization on Wednesday, Oct. 29. news@thewirereport.ca

Corus recapitalizes in order to strengthen financial position

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By Wire Report Staff
|November 3, 2025

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Corus recapitalizes in order to strengthen financial position

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By Wire Report Staff
|November 3, 2025