Central European Media Enterprises (CME), the Bermuda-based TV group that is on the airwaves in six countries in Central and Eastern Europe, has funded an expansion through the offer of $475 million in five-year convertible notes.

Network topper Michael Garin said: "We now have the capability to fund the ambitious growth plans we have for CME with no dilution expected for current shareholders below a share price of $151.20 and at a lower cost of capital than we are paying on our current debt." The willingness to take on debt in the current climate, he added, "will allow us to create significant value for our shareholders."

Among other things, network will use the proceeds to acquire additional interests in Studio 1+1 in the Ukraine, whose minority owners it recently bought out.

CME's other stations, in the Czech Republic, Slovakia, Slovenia, Croatia and Romania, reach about 90 million viewers.