American Media starts roadshow for $475 million two-part secured notes

By Paul A. Harris

St. Louis, Nov. 10 - AMO Escrow Corp. and American Media Operations, Inc. began a roadshow on Wednesday for their $475 million two-part seven-year secured notes offering, according to market sources.

The deal features a $385 million tranche of first-lien senior secured notes and a $90 million tranche of second-lien senior secured notes.

The notes in both tranches become callable in year three at par plus 75% of the respective coupons. The first-lien notes feature a special call provision allowing the issuer to redeem up to 10% of the notes at 103 during the non-call period.

J.P. Morgan Securities LLC has the books for the Rule 144A and Regulation S with registration rights offering.

Deutsche Bank Securities Inc. and Credit Suisse Securities are the co-managers.

The New York-based magazine publisher will use the proceeds to finance its exit from bankruptcy. The proceeds will be escrowed pending the exit.

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