Two more years

23 April 2009 By Una Galani Follow @ugalani

Executive chairman Michael Grade is relinquishing his CEO duties just as it looks like the UK broadcaster will muddle through the advertising slump. But ITV s covfree loan and a planned disposal should be enough to dodge a rights issue and ensure ITV repays debt due in 2011.

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ITV on April 23 said it had agreed terms for a covenantfree financing to raise £58m and will sell its digital terrestrial operator SDN. ITV has no current plans for a rights issue to boost its balance sheet which has been badly hit by the advertising slump.

The UK broadcaster also announced that Executive Chairman Michael Grade will relinquish his executive responsibilities at the end of the year following the outcome of the regulatory review on advertising rules. ITV will appoint a new chief executive no later than the end of 2009.

ITV has a £1.1bn market capitalisation and net debt stood at £646m at the end of December 2008. The broadcaster has a £335m bond maturing in 2011.

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