Southern Cross Media Group (SXL) announced that Southern Cross Media Australia Pty Limited (“SCM”) has entered into an agreement with a consortium of six banks for a refinancing facility of $375 million in place of its existing business level debt facility. The company said the facility is for a four year term and that once completed would position SCM with a conservative and sustainable level of debt with long dated maturity.

Southern Cross Media said SCM intends to reach financial close on the refinancing today, while it has agreed with Macquarie Bank to waive the American Consolidated Media LLC (“ACM”) financing condition to the Internalisation and Corporatisation.

”As a result, on financial close of the SCM refinancing, all conditions to the internalisation will be satisfied or waived, and completion of the Internalisation will occur immediately thereafter,” the company said.

”Corporatisation will then occur on 18 March 2010 in accordance with the timetable previously communicated.”

ACM breached certain covenants under its US$133.7m business level bank facility and has entered into a forbearance agreement with its lenders that expires on 29 March 2010.

Southern Cross said discussions have continued with ACM’s lenders during the forbearance period in relation to a possible restructuring of the ACM Facility that would permit the Internalisation and Corporatisation to occur.

Meanwhile, the company announced that Stephen Kelly has been appointed to replace Liam Buckley as chief financial officer upon internalisation.

As at 1054 AEDT, Southern Cross shares were up 6c to $2.11.