American Media begins private exchange offer for 14% notes, tender offer for 9% PIK notes

By Angela McDaniels

Tacoma, Wash., July 16 - American Media, Inc. began a private exchange offer for its $356 million of 14% senior subordinated notes due 2013 and a tender offer its $23.7 million of 9% senior pay-in-kind notes due 2013, according to a company news release.

As previously reported, the company announced on July 2 that it reached an agreement with 90% of its bondholders to exchange those bonds for shares of the company's common stock.

The actual launch of the offers occurred July 15, and they will expire at 9 a.m. ET on Aug. 11.

American Media is offering $269.52 in cash and 335.62 shares of common stock for each $1,000 principal amount of 14% notes.

The company will pay $1,020 for each $1,000 principal amount of 9% PIK notes.

Concurrently with the exchange offer and tender offer, American Media is soliciting consents to amend the indentures governing the notes to remove substantially all of the restrictive covenants and some events of default.

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

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