NEW YORK (TheStreet) -- Shares of Central European Media (CETV) exploded 57.56% to $4.27 on Friday after the company announced its main shareholder, Time Warner Cable (TWC), would secure its financing requirements.
"We are seeking to raise up to approximately US$ 545.0 million in new indebtedness through these transactions to enable us to refinance the 2016 Fixed Rate Notes and for general corporate purposes," the company said in a regulatory filing. "These transactions, if closed, will significantly reduce the amount of cash interest to be paid in the coming years by replacing cash pay indebtedness with non-cash pay indebtedness and will provide sufficient liquidity to fund our operations and relieve pressure on our working capital position."
The transactions include issuing rights for debt notes and warrants for new shares.
For the fourth quarter, Central European Media reported a loss of 72 cents a share on revenue of $237.9 million, down year over year from $253.34 million. Analysts polled by Thomson Reuters expected revenue of $206.5 million. Quarterly operating income before depreciation and amortization (OIBDA) loss totaled $400,000, which was far better than analysts' expectations of a $9.9 million loss.
TheStreet Ratings team rates CENTRAL EUROPEAN MEDIA as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation: