Interest in SIS

2 Oct 2006 07:01

Catalyst Media Group PLC02 October 2006 2 October 2006 Catalyst Media Group plc ("CMG" or the "Company") Interest in SIS CMG is pleased to announce that it has today repaid the balance of £10.64million to redeem the Deep Discount Bonds held by The Eureka Interactive FundLtd ("Eureka"), issued to Eureka at the time of CMG's acquisition of an interestin Satellite Information Services (Holdings) Limited ("SIS"). CMG acquired itsinterest in SIS by the purchase of Alternateport Limited from United BusinessMedia plc. The acquisition was made through CMG's subsidiary, Catalyst MediaHoldings Limited ("CMH"), which was owned as to 80% by CMG and 20% by Eureka.The Company has exercised its call option to acquire the 20% interest notcurrently held by it in CMH from Eureka for a cash consideration of £5.5million. In order to finance this transaction and the associated costs, CMG hasdrawn down £17.3 million of an £18.625 million facility ("Facility") that hasbeen arranged with Investec Bank (UK) Limited ("Investec"), on terms which aremore favourable than those provided by Eureka. The Facility runs until December 2010 and is secured against the assets of CMHand Alternateport, both of which are now wholly owned subsidiaries of CMG. Underthe terms of the agreement with Investec all capital repayment and interestcharges are rolled up and payable from any dividends received from SIS duringthe term. As a result of this transaction CMG now owns a 22.2% stake in SIS and willtherefore receive 22.2% of future dividends paid by SIS. Enquiries: Paul Duffen, Chief Executive Catalyst Media Group plc 0207 927 6699 This information is provided by RNS The company news service from the London Stock Exchange