Radio One intends to sell $100 million seven-year secured notes to fund increased stake in TV One

By Paul A. Harris

St. Louis, June 17 - Radio One, Inc. plans to sell $100 million of seven-year senior notes (Caa2/CCC+), according to market sources.

The proceeds will be used to fund the acquisition of additional equity interests in TV One, LLC, a Silver Spring, Md., television broadcaster that targets African American audiences in urban communities.

Radio One already owns a 37% stake in the company.

Radio One is concurrently in the market with a $400 million senior secured credit facility, which is scheduled to launch on Monday.

Deutsche Bank Securities is leading the bank loan, proceeds from which will be used to refinance Radio One's existing credit facility.

The company also has underway an exchange offer for all of its 8 7/8% senior subordinated notes due 2011 and its 6 3/8% senior subordinated notes due 2013.

The company is offering new 11%/12% senior grid notes due 2017 in the exchange.

Radio One is also soliciting consents to amend the note indentures.

The exchange offer expires on July 15.

Bondholders who participate in the exchange will be invited to participate in a $100 million offering of 8½%/9% second-priority senior secured grid notes due 2016 (B3/CCC+).

Proceeds from the grid notes will also be used to help fund the increased stake in TV One.

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