Dex One opts for partial PIK interest on 12%/14% notes in effort to 'improve capital structure'

By Jennifer Chiou

New York, Sept. 28 - Dex One Corp. delivered notice to trustee Bank of New York Mellon that it has elected to pay interest half in cash and half in kind for its $300 million of 12%/14% senior subordinated notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

The company said that opting for this type of payment is to provide financial flexibility as it works to improve its capital structure.

The election applies to the semiannual interest period ending on March 31.

The company may elect to make other future interest payments entirely in cash or 50% in cash and 50% in PIK interest.

Dex One, which was known as R.H. Donnelley Corp. prior to its emergence from Chapter 11 on Jan. 29, 2011, is a Cary, N.C.-based Yellow Pages and online local commercial search company.

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