UTV MEDIA has put in place a new £90 million (€112 million) banking facility, which, it believes, is a “good deal for UTV and its shareholders”.

The Belfast-based multimedia group’s current bank facilities arrangement had been due to end next June.

It has now secured new financing from a bank group made up of Bank of Ireland, Ulster Bank and Northern Bank.

Norman McKeown, group finance director of UTV Media, said: “The new facilities, comprising a £65 million revolving credit facility and a €25 million term loan, reflect the group’s ongoing banking requirements following the group’s 49 per cent debt reduction made over the last three years.”

The term loan has biannual repayments of €2.5 million in June and December, with the first repayment due in December of this year.

Mr McKeown said, because UTV had reduced borrowing requirements, it had been able “to secure a very competitive banking agreement”.

He outlined that the facility, which is for five years, “has a margin that is only 0.25 per cent above the current cost and has covenants that provide considerable operational flexibility”.

“This is a good deal for UTV and its shareholders,” Mr McKeown added.

UTV Media plc currently has a ratio of net debt to earnings before interest, tax, depreciation and amortisation of less than two.

The Belfast group’s latest financial results and accounts for 2011 show it made mandatory debt repayments during the year of £8.3 million and a further £12 million of voluntary debt repayments.

UTV said this was one of the key factors in its ability to reduce its net debt position down from £71.5 million in 2010 to £54.7 million by the close of December 2011.