Re SIS Dividend

28 Nov 2005 07:00

Catalyst Media Group PLC28 November 2005 28 November 2005 Catalyst Media Group Plc Catalyst Media Group plc ("CMG") is pleased to announce that the Board ofSatellite Information Systems (Holdings) Ltd ("SIS") has resolved to pay aninterim dividend of £10 million with immediate effect. CMG's share of thisdividend is £2.2 million which will be applied to the early reduction of debtwhich was raised to part finance the acquisition of a 20% interest in SIS (the"Acquisition") in September 2005 for £23 million in cash. This interest wasincreased to 22.2% following the buy back of shares by SIS in November 2005. The Acquisiton was partly financed by the issuance of secured deep discountedBonds to Eureka Interactive Fund Ltd for a subscription of £11.75 million.Whilst the Bonds have a nominal value on maturity of £16.7 million they may beredeemed at any time at a deep discount which equates to an interest rate of 10%per annum. Consequently, following application of the funds from this dividend,the outstanding balance will be reduced from £12.09 million, including accruedinterest, to £9.9 million. SIS has, in the recent past, had a policy of declaring a substantial dividendevery four years. The Directors of CMG expect the next dividend in line withthis policy to be declared before the end of 2006. Since the Acquisition, CMG has comprehensively restructured and the Group is nowprofitable on a monthly basis. END This information is provided by RNS The company news service from the London Stock Exchange