Corus Entertainment to set pricing in tender for 8¾% notes on Wednesday

New York, Jan. 17 - Corus Entertainment Inc. said it will set pricing in its cash tender offer for its $375 million of 8¾% senior subordinated notes due 2012 on Wednesday.

Corus previously said on Jan. 10 that it had extended the tender to midnight ET on Jan. 20 instead of midnight ET on Jan. 13.

The company also accepted consents tendered before the consent deadline of 5 p.m. ET on Dec. 29.

By 5 p.m. ET on Jan. 10, holders had tendered $373.5 million or 99.61% of the notes.

Corus announced the tender offer on Dec. 15 and said it was soliciting consents to amend the note indenture to eliminate all of the restrictive covenants and events of default.

For each $1,000 principal amount of notes, Corus Entertainment said it will pay $1,043.75 - the present value of the notes on their first call date on March 1, 2007 - discounted using the yield to maturity of the 3 3/8% Treasury due Feb. 28, 2007 and 50 basis points.

The company added that it will also pay accrued interest.

Those who tender their holdings before the consent deadline will receive a $20.00 per $1,000 principal amount of notes consent payment, which is included in the payout.

The offer is conditioned upon tenders from holders of at least a majority of notes and necessary financing.

Citigroup Corporate and Investment Banking is dealer manager and solicitation agent (800 558-3745 or call collect 212 723-6106). Global Bondholder Services Corp. is the information agent and depositary (866 470-4300 or call collect 212 430-3774).

Based in Calgary, Alta., Corus Entertainment is a media and entertainment company.

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