American Media Operations $150 million add-on launches Wednesday

By Paul A. Harris

St. Louis, Mo., Feb. 5 - American Media Operations, Inc. will start a roadshow Wednesday for a $150 million add-on to its 10¼% series B senior subordinated notes due May 1, 2009, according to a syndicate source.

The roadshow will run Feb. 6-8, with pricing expected Feb. 11.

J.P. Morgan is sole bookrunner and Bear Stearns & Co. is co-manager on the Rule 144A deal.

The notes are callable beginning May 1, 2004 at 105.125, at 103.417 in 2005, at 101.798 in 2006, and at par on May 1, 2007 and thereafter. They contain an equity clawback until May 1, 2002 for 35% at 110.250.

The Boca Raton, Fla.-based publishing company will use half the proceeds to repay bank debt and the other half to pay a dividend to its parent, according to the syndicate source.

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