CETV announced the closing of the sale of 200,000 preferred shares to Time Warner

CETV announced the closing of the sale of 200,000 shares of its Series B Convertible Preferred Stock, par value USD 0.08 per share, to Time Warner, for aggregate consideration of USD 200 mln. The proceeds of this private placement, along with USD 100 mln of net proceeds from CME’s public offering completed in May 2013, will be used to fund the repurchase or redemption of a portion of CME’s outstanding 11.625% senior notes due 2016. /Neutral, expected. Note TW may convert non-voting class B shares into class A shares at price of 3.15 USD/share in amount of 200 mln. USD + accrued preferred dividends (this should be equal to roughly 80 mln. shares) in 3 years’ time. CETV may redeem ‘B’ shares after 3 years.