Postmedia’s pivotal moment: Cutting $650-million in debt

James Bradshaw, the  Globe's media rporter, writes:

"For some time, Postmedia has been caught in a cash-sapping cycle. Despite owning daily newspapers that reach 6.3 million Canadians weekly, revenue has steadily fallen and the company has had to constantly cut costs to keep generating cash flow to service its total long-term debt – which stands at $652-million and mostly dates from the company’s 2010 emergence from the bankruptcy of CanWest Global Communications Corp.

"Now, Postmedia has reached a pivotal moment as it looks to refinance its steeply priced debt, on which it pays sky-high interest rates of 8.25 to 12.5 per cent and which has cost the company more than $60-million annually in interest payments. Much of the debt comes due in 2017 and 2018, but company executives are looking to refinance the loans in the next year or perhaps even sooner, in the hope of securing lower rates."
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