Ascent Media tenders for Meridian Funding floaters in effort to refinance Monitronics debt

By Jennifer Chiou

New York, May 13 - Ascent Media Corp. announced the start of a cash tender offer for any and all of the $300 million of floating-rate notes due 2027 originally issued by Meridian Funding Co., LLC.

According to a press release, the offer is being made in connection with the refinancing of the existing securitized debt of Monitronics Funding LP, which is a subsidiary of Ascent's direct wholly owned operating subsidiary, Monitronics International, Inc.

For each $1,000 principal amount of notes, the company will pay a total consideration of $850, including a $30 early tender premium for those who tender prior to 5 p.m. ET on May 26.

Participating holders will also receive accrued interest.

The offer will expire at 5 p.m. ET on June 10.

Ascent is seeking tenders from holders of at least a majority of the notes.

The offer is conditioned on, among other things, sufficient financing and Ascent's entry into one or more agreements to refinance in full and cancel all of the existing securitized debt of Monitronics Funding.

In addition, Ascent said it intends to seek an agreement with Meridian to exchange the Meridian notes validly tendered and accepted for a corresponding principal amount of class A-1a term notes, series 2007-1, due 2027 issued by Monitronics Funding.

Following settlement of the tender offer, Ascent plans to cancel those exchanged class A-1a notes and/or Monitronics Funding will redeem or discharge them.

Citigroup Global Markets Inc. (800 558-3745) is the dealer manager, and Global Bondholder Services Corp. (866 857-2200 or 212 430-3774) is the depositary and information agent.

Based in Englewood, Colo., Ascent Media provides creative and network services to the media and entertainment industries in the United States, the United Kingdom and Singapore.

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