By Susanna Moon
Chicago, Feb. 28 - Central European Media Enterprises Ltd. plans to issue $339.1 million principal amount of 15% senior notes due 2017 under a planned rights offering of units, according to an S-3 filing with the Securities and Exchange Commission.
Each unit will consist of a 15% senior secured note due Dec. 1, 2017 and 21.167376 unit warrants exercisable at $1 per share. Each note will have a par value of $100.
Under the rights offering, holders of class A common stock and preferred stock will receive rights to purchase an aggregate of 3,391,403 units at a subscription price of $100 per unit.
Proceeds of the rights offering will be used to redeem the company's €272,972,000 principal amount of 11 5/8% senior notes due 2016.
The company also plans to issue $57.7 million principal amount of 15% senior notes due 2017 under a private placement with Time Warner.
Time Warner Inc. has agreed to purchase all units in the rights offering not subscribed for by other shareholders, according to a press release. In addition, Time Warner will purchase 576,968 units in a separate private placement to close with the rights offering.
Proceeds of the rights offering and the purchase of units by Time Warner will be about $396.8 million, which is equal to the amount of principal and early redemption premium payable to redeem the 2016 notes.
Consent solicitation for 9% notes
Central European Media's Czech Subsidiary CET 21 began a consent solicitation for its 9% senior secured notes due 2017 to allow debt to be incurred under the refinancing plans.
The company is seeking consents to enhance the liquidity and operating cash flow of Central European Media and its restricted subsidiaries, including CET 21, by substituting cash pay debt with non-cash pay debt, according to a separate press release.
The consent solicitation will end at 5 p.m. ET on March 11.
The company provides programming in Eastern European countries, including the Czech Republic, Bulgaria, Romania, Slovakia, Slovenia and Croatia.
| Issuer: | Central European Media Enterprises Ltd.
|
| Amount: | $339.1 million
|
| Maturity: | Dec. 1, 2017
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| Coupon: | 15%
|
| Price: | Par of $100
|
| Warrants: | 21.167376 per note
|
| Warrant strike price: | $1 per share
|
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