ITV has entered a swap deal with Credit Suisse, The Wall Street Journal reports. The deal covers £1.7 billion of the U.K. commercial broadcaster’s pension liability. ITV will pay a fixed sum each month to the investment bank, while the bank will pay back an amount that equals the benefits it has to pay to retired staff.
The longevity swap has raised ITV’s pension deficit by £50 million, which was last valued at £312 million. To counter the deficit, ITV has also extended the tenure of a previously decided funding deal, whereby revenue from its digital division will be paid to the pension scheme.