Hollinger receives consents to amend 11 7/8% notes, to sell additional $40 million

New York, Oct. 28 - Hollinger Inc. said it received consents to amend the indentures for its $78 million 11 7/8% senior secured notes due 2011 and its $15 million 11 7/8% second priority senior secured notes due 2011.

The company also said it has received commitments to buy up to $40 million of new second priority notes at par.

The amendments allow Hollinger to proceed with a going-private transaction. Specifically, noteholders approved: the retirement for cash of all outstanding retractable common shares of Hollinger other than those held directly or indirectly by Ravelston; retraction requests and/or payments for the exercise of dissent rights of the retractable shares in connection with the going-private transaction; and the retirement of all outstanding series II preference shares of Hollinger for unencumbered shares of class A common stock of Hollinger International Inc.

The amendments also allow Hollinger to incur up to $40 million of additional debt by issuing second priority notes.

The changes will become effective when the necessary corporate and regulatory approvals have been obtained.

Hollinger will pay a consent a fee of $5 in cash per $1,000 principal amount of notes to all holders, whether they delivered consents or not, subject to approvals of the going-private transaction being received by March 31, 2005.

In addition, Hollinger said it has commitments for up to $40 million principal amount of new second priority notes at par. Hollinger will be able to draw on the commitments once it receives the necessary approvals, as long as they are received by March 31, 2005.

Proceeds will be used for the going-private transaction.

Hollinger will pay a 1% commitment fee and a draw-down fee of 1.5%.

Hollinger is a Toronto-based owner of a 68.0% voting and 18.2% equity interest in Hollinger International, an international newspaper publisher.

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