NextMedia set pricing in tender for 10¾% notes

New York, Oct. 24 - NextMedia Operating, Inc. said it has fixed pricing in its tender offer and consent solicitation for its $200 million of 10¾% senior subordinated notes due 2011.

The company will pay $1,090.04 per $1,000 principal amount, including the consent payment of $20.00 per $1,000.

Pricing was fixed at 2 p.m. ET on Oct. 21.

As announced on Oct. 11, the Denver-based outdoor advertising company is offering a sum based on the present value of the notes' $1,053.75 redemption price on their first call date of July 1, 2006 plus interest payments to that date, discounted using 50 basis points over the yield to maturity of the 2.75% U.S. Treasury note due June 30, 2006. Accrued interest up to but excluding the payment date will then be subtracted.

The total includes a consent payment of $20.00 per $1,000 principal amount that will only be paid to holders who tender with consents by the consent deadline of 5 p.m. ET on Oct. 25. The tender ends at 5 p.m. ET on Nov. 8.

NextMedia will also pay accrued interest up to but excluding the payment date.

The company is soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, including those limiting the incurrence of debt and the payment of dividends on and the repurchase of NextMedia's capital stock, certain affirmative covenants and certain events of default.

Holders may not tender without delivering consents or vice versa.

The tender is subject to NextMedia completing new financing and receiving the consents of holders of at least a majority of the notes.

Goldman, Sachs & Co. is dealer manager (877 686-5059 or 212 357-7867). Global Bondholder Services Corp. is the information agent (212 430-3774).

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