TORONTO, ONTARIO -- (Marketwire) -- 07/04/12 -- ZoomerMedia Limited (the "Company" or "ZoomerMedia") (TSX VENTURE: ZUM) is pleased to announce it has closed a $17 million debt financing arrangement with Royal Bank of Canada ("RBC").
The debt financing is made up of a $7 million mortgage on the Company's property (held in its wholly-owned subsidiary) located on Jefferson Avenue in Toronto and a $7 million term loan and $3 million operating facility secured by a charge over the assets of the Company including the Jefferson Avenue property. The $7 million term loan and $3 million operating facility represent an amendment to a $10 million operating facility that was arranged with RBC in November 2010. The $7 million mortgage replaces a previous mortgage managed by First National Financial LLP ("First National Mortgage"). The $7 million term loan and the $7 million mortgage have an amortization period of 25 years, interest rate of 6.297% per annum and a term of 3 years. Amounts drawn under the $3 million operating facility will bear interest at RBC prime plus 2% per annum.
The net proceeds of the debt financing (after expenses including those relating to the defeasement of the First National Mortgage) will be primarily used to complete the renovations of the Company's Jefferson Avenue property so that it can consolidate all of its operations into one location.
About ZoomerMedia Limited
ZoomerMedia is a multimedia company that serves the 45plus "Zoomer" demographic through television, radio, magazine, internet and trade shows. ZoomerMedia's television properties include; VisionTV, Canada's only multi-faith specialty television service; ONE: the Body, Mind Spirit & Love Channel, offering programs on exercise, meditation, yoga, natural health and living a planet-friendly lifestyle; Joytv 10 in Vancouver and Joytv 11 in Winnipeg, two conventional television stations, available over the air and on cable in their respective markets. ZoomerMedia's radio properties include CFMZ-FM Toronto - The New Classical 96.3FM, CFMX-FM Cobourg - The New Classical 103.1FM, Canada's only commercial classical music radio stations serving the Greater Toronto Area (GTA) and eastern Ontario, and CFZM-AM 740 Toronto - The New AM740 Zoomer Radio, the last music service left on the AM dial in the GTA. ZoomerMedia also publishes Zoomer Magazine, the largest paid circulation magazine in Canada for the 45plus market. ZoomerMedia is Canada's leading provider of online content targeting the 45plus age group through several properties, the key one being www.50plus.com. ZoomerMedia also has a trade show division that conducts annual consumer shows directed to the 45plus age group and owns ideaCity, an annual Canadian conference also known as 'Canada's Premiere Meeting of the Minds'.
Cautionary note on forward looking statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, the demand for ZoomerMedia's products and services and the availability of funding. These forward-looking statements are made as of the date hereof and ZoomerMedia does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from ZoomerMedia's expectations and projections.
The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.
Vice President and Chief Financial Officer