By Susanna Moon
Chicago, May 2 - Central European Media Enterprises Ltd. said it issued $400 million principal amount of 15% senior secured notes due 2017 under a rights offering, backstop purchase commitment and private placement.
The company also issued unit warrants for 84 million shares of its class A common stock exercisable at $1.00 per share.
Proceeds from the transaction, along with some proceeds of a $30 million term loan, were used to redeem and discharge €272,972,000 principal amount of its 11 5/8% senior notes due 2016, according to a company press release.
Time Warner funded the $30 million term loan due Dec. 1, 2017.
Time Warner and CME also entered into a $115 million senior secured revolving credit facility agreement. Following settlement, Time Warner's economic ownership in the company will be about 75.1%, after giving effect to the accretion of the series B convertible preferred stock through May 2, the company said.
Deal background
The company said Feb. 28 it planned to issue $339.1 million principal amount of 15% senior notes due 2017 under a planned rights offering of units.
Central European Media's Czech subsidiary CET 21 also solicited consents for its 9% senior secured notes due 2017 to allow debt to be incurred under the refinancing plans.
On March 12 the company said it received the needed consents by the end of the solicitation at 5 p.m. ET on March 11.
CET 21 obtained consents from holders of a majority of the notes and executed a supplemental indenture.
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: | $400 million
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| Maturity: | Dec. 1, 2017
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| Coupon: | 15%
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| Warrants: | For 84 million shares
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| Warrant strike price: | $1 per share
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