American Media talks $385 million offering of seven-year first-lien notes at 11% area yield

By Paul A. Harris

St. Louis, Nov. 15 - AMO Escrow Corp. and American Media Operations, Inc. talked their $385 million tranche of seven-year first-lien senior secured notes with an 11% area yield on Monday, according to a market source.

The deal is set to price on Tuesday.

The $475 million two-part offering also includes a $90 million tranche of second-lien senior secured notes. However no price talk surfaced on the second-lien notes, the source said.

The notes in both tranches become callable in year three at par plus 75% of the respective coupons. The first-lien notes feature a special call provision allowing the issuer to redeem up to 10% of the notes at 103 during the non-call period.

J.P. Morgan Securities LLC has the books for the Rule 144A and Regulation S with registration rights offering.

Deutsche Bank Securities Inc. and Credit Suisse Securities are the co-managers.

The New York-based magazine publisher will use the proceeds to finance its exit from bankruptcy. The proceeds will be escrowed pending the exit.

© 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.