By Paul A. Harris
St. Louis, Jan. 16 - American Media Operations Inc. priced $150 million of senior subordinated notes due Jan. 15, 2011 (B2/B-) at par Thursday to yield 8 7/8%, according to a syndicate source.
Price talk was for a yield in the 9% area.
JP Morgan was the bookrunner. Bear Stearns & Co. was co-manager.
The Rule 144A notes are non-callable for four years.
Proceeds will be used to help fund the acquisition of Weider Publications.
The issuer is the Boca Raton, Fla.-based publisher of National Enquirer, Star, Weekly World News, other newspapers and magazines.
Issuer: American Media Operations Inc.
Amount: $150 million
| Maturity: | Jan. 15, 2011
|
| Securities description: | Senior subordinated notes
|
| Manager: | JP Morgan (books)
|
| Co-manager: | Bear Stearns
|
| Coupon: | 8 7/8%
|
| Price: | Par
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| Yield: | 8 7/8%
|
| Spread: | 476 basis points
|
| Call features: | Callable on Jan. 15, 2007 at 104.4375, 102.219, par on Jan. 15, 2009 and thereafter
|
| Equity clawback: | Until Jan. 15, 2006 for 35% at 108.875
|
| Settlement date: | Jan. 23, 2003
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Price talk: | 9% area
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