Corus Entertainment tenders for all 8¾% notes due 2012

By Jennifer Chiou

New York, Dec. 15 - Corus Entertainment Inc. said it launched a cash tender offer and consent solicitation for its $375 million of 8¾% senior subordinated notes due 2012.

The tender offer expires at midnight ET on Jan. 13, unless extended.

The consent solicitation, which is for proposed amendments to eliminate all of the restrictive covenants and events of default in the notes' indenture, will end at 5 p.m. ET on Dec. 29.

For each $1,000 principal amount of notes, Corus Entertainment said it will pay $1,043.75 - the present value of the notes on their first call date on March 1, 2007 - discounted using the yield to maturity of the 3 3/8% Treasury due Feb. 28, 2007 and 50 basis points.

The company added that it will also pay accrued interest.

Those who tender their holdings before the consent deadline will receive a $20.00 per $1,000 principal amount of notes consent payment, which is included in the payout.

The offer is conditioned upon tenders from holders of at least a majority of notes and necessary financing.

Citigroup Corporate and Investment Banking is dealer manager and solicitation agent (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the information agent and depositary (866 470-4300 or call collect 212 430-3774).

Based in Calgary, Alta., Corus Entertainment is a media and entertainment company.

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