ITV offers new notes, cash in exchange offer for €500 million 6% notes

By Angela McDaniels

Tacoma, Wash., June 10 - ITV plc is offering cash and up to €350 million of 9% notes due 2014 in exchange for its €500 million of 6% notes due Oct. 3, 2011, according to a company news release.

For each €1,000 principal amount of old notes tendered, holders will receive approximately €700 of new notes and about €300 in cash. The company will also pay accrued interest.

The new notes will be issued in a minimum denomination of €50,000 and in multiples of €1,000 above that. The new note component of the payment for any holding of existing notes tendered will be rounded up to the nearest €1,000, and the remaining payment amount will be rounded down and delivered in cash.

As a result, the minimum holding of existing notes that can be tendered is €71,000. In such a case the holder would receive €50,000 of new notes and €21,000 in cash.

The offer will expire at 11 a.m. ET on June 24, and the settlement date is expected to be June 30.

The company said the rationale for the offer is to reduce its overall debt and its debt maturities due in the next three years.

ITV noted that the coupon of the existing notes steps down to 4¾% under some circumstances.

The dealer manager is Royal Bank of Scotland plc (+44 20 7085 8056/6192, Attn: Andrew Burton/Russell Maybury). The exchange agent is Citibank, NA, London Branch (+44 20 7508 3775, Attn: Exchange Team).

ITV is a London-based television broadcaster.

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