MediaNews tenders for 8¾% notes

New York, Nov. 5 - MediaNews Group Inc. said that it has begun a cash tender offer for all of its $300 million of outstanding 8¾% series B senior subordinated notes due 2009 and is also soliciting noteholder consents to proposed indenture changes.

It set 5 p.m. ET on Nov. 19 as the consent deadline and 12 midnight on Dec. 3 as the expiration date, with both deadlines subject to possible extension.

MediaNews Group, a Denver-based newspaper ownership group and corporate successor to Garden State Newspapers Inc., said that holders tendering their notes will be required to consent to the proposed indenture amendments, which would eliminate substantially all of the indenture's restrictive covenants. Adoption of the amendments requires the consent of holders of at least a majority of the aggregate principal amount of the outstanding notes. Holders may not tender their notes without also delivering consents or deliver consents without also tendering their notes.

The company said that holders who validly tender their notes (and thus consent to the proposed amendments) by the consent deadline will receive the total consideration of $1,031.67 per $1,000 principal amount, which will include a $30 per $1,000 consent payment as well as the $1,001.67 per $1,000 tender price. Holders tendering their notes after the consent deadline but before the expiration will receive the tender price of $1,001.67 per $1,000 principal amount, but not the consent payment. All validly tendering holders will also receive accrued and unpaid interest up to, but not including, the applicable date of payment for the notes.

The tender offer is subject to the satisfaction of certain conditions, including approval by the noteholders of the proposed indenture amendments, the company's receipt of tenders of a majority of the outstanding notes, and completion of a debt financing on terms acceptable to MediaNews Group in an amount sufficient to consummate the offer.

Banc of America Securities LLC (contact High Yield Special Products at 888 292-0070 or collect at 704-388-4813) and Deutsche Bank Securities Inc. (call High Yield Capital Markets collect at 212 250-5655) will act as dealer managers and solicitation agents. Documentation can obtained from D.F. King & Co., Inc., the information agent (800 431-9633 or collect at 212 269-5550).

© 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.