Emmis repurchases 97.98% of notes, gets tenders for 1.99% of 6 7/8% notes due 2012

By Jennifer Chiou

New York, Oct. 20 - Emmis Communications Corp. said its subsidiary, Emmis Operating Co., bought back $367.433 million or 97.98% of its 6 7/8% senior subordinated notes due 2012 in an oversubscribed repurchase offer for $339.6 million of notes.

The company also received tenders for $7.449 million or 1.99% of notes in a tender offer for $35.4 million of the notes.

The company said it expects to enter into a supplemental indenture to effect amendments to the note indenture.

The offers ended at midnight ET on Oct. 19. They began on Sept. 21.

In the asset sale offer, the company offered to purchase $339.6 million of notes.

The Indianapolis media company also solicited consents for proposed amendments to the note indenture to eliminate substantially all of the restrictive covenants and certain events of default.

The company said it will pay par in cash for both offers. Emmis said noteholders will receive accrued interest up to but excluding the payment date.

Emmis sought consents from a majority of noteholders. The asset sale offer was not subject to any minimum.

Holders may not deliver consents without tendering and may not tender notes into the tender offer without tendering in the asset sale offer.

Georgeson Shareholder Communications Inc. is the information agent (866 628-6045 or call collect 212 440-9800). Banc of America Securities LLC (888 292-0070 or call collect 704 387-4206) and Deutsche Bank Securities (800 553-2826 or call collect 212 250-7772) are the dealer managers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.