By Susanna Moon
Chicago, March 2 – American Media, Inc. plans to issue about $73 million of its 7% second-lien notes that are due in 2020 in exchange for $60 million principal amount of its 11½% first-lien senior secured notes due 2017.
The exchange will reduce the amount of the company’s first-lien notes to about $213 million, “while improving the company’s capital structure and its ability to refinance these notes later this year,” according to a company press release.
The company said it also expects to issue to some noteholders additional 7% second-lien notes due 2020. American Media said it expects to return the proceeds from the issue to its investors.
The transactions are conditioned on lender approval, and the company’s largest lenders have given their support, the release noted.
“Due to the continued support and confidence of our noteholders, we are able to make this strategic move to improve our balance sheet for a potential refinancing of our first lien notes,” David J. Pecker, the company’s chairman, president and chief executive officer, said in the release.
American Media is a New York-based magazine publisher.
New notes
| Issuer: | American Media, Inc.
|
| Issue: | Second-lien senior secured notes
|
| Amount: | $73 million
|
| Maturity: | July 15, 2020
|
| Coupon: | 7%
|
| Call option: | At par plus make-whole premium at any time prior to Jan. 15, 2018; before Jan. 15, 2018, up to 35% of notes at 107 from cash proceeds of one or more qualified equity offerings if at least 65% of the aggregate principal amount of the notes remains outstanding after redemption
|
| Put option: | At 101 if change of control occurs; at par if company sells assets under some circumstances
|
© 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.
