American Media holders exchange 13˝%, 10% notes for equity interests

By Susanna Moon

Chicago, Sept. 10 – American Media, Inc. holders agreed to exchange their 13˝% second-lien senior secured notes due 2018 and 10% second-lien senior secured pay-in-kind notes due 2018 for equity interests, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into an exchange agreement on Sept. 8 with AMI Parent Holdings LLC, Chatham Asset Management LLC and Omega Charitable Partnership, LP that allowed the noteholders to exchange about $7.8 million of the 13˝% notes and about $113.3 million of the 10% PIK notes for equity interests in AMI Parent.

The noteholders are also holders of the company’s 11˝% first-lien senior secured notes due 2017. The company is a wholly owned subsidiary of AMI Parent.

American Media is a New York-based publisher of celebrity journalism and health and fitness magazines.

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