TV3 owner MediaWorks NZ Ltd has raised $70 million of new capital and restructured its banking arrangements.

Funds managed or advised by private equity company Ironbridge bought 70 percent of the company from CanWest in 2007 for $386 million and the rest was purchased in two offers.

MediaWorks said today that shareholders had made an increased capital commitment of $70m, which was used to repay senior debt, reset fixed interest rate swaps and provide liquidity.

Funds advised by Ironbridge contributed $50m and remain majority shareholders.

Ironbridge's partner for New Zealand, Kerry McIntosh, said funds managed by Ironbridge had always been the majority but not the sole investors in MediaWorks. The rest were institutions he declined to name.

The company said banking arrangements have been restructured, again without giving detail.

Mr McIntosh declined to comment on whether bank covenants were an issue.

"The recapitalisation, combined with the restructure of the company's banking arrangements, has placed the company on a sound financial footing. This, together with the improving advertising market conditions, places the company in an excellent position for 2010 and beyond," chairman Brent Harman said.

Chief executive Brent Impey is leaving the company at the end of the year, ending a decade at the helm. Australian media executive Ian Audsley will head the television business for a year.

Mr McIntosh said the recapitalisation confirmed the commitment of the Ironbridge funds to MediaWorks.

"We believe MediaWorks is a high quality business and this was a key driver of our decision to support the business and its senior management team by investing further funds. The improved banking package and lower cash interest costs delivered by the restructure will ensure the business is well placed to take advantage of improved trading conditions," he said.

MediaWorks operates the TV3 and C4 television networks and its radio stations include The Edge, The Rock, More FM, RadioLive and Kiwi FM.

So-called private equity investors typically own businesses for about five years.

Mr McIntosh said the business was not being prepared for sale.

"We obviously want to see a recovery in earnings before we consider any liquidity event," he said.

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