Corus Entertainment buys $373.65 million 8¾% senior subordinated notes in tender

By Angela McDaniels

Seattle, Jan. 23 - Corus Entertainment Inc. said it has completed its cash tender offer and consent solicitation for its 8¾% senior subordinated notes due 2012. The offer expired on Jan. 20.

Of $375 million notes outstanding, $373,646,000, or 99.64%, were tendered. The company was able to amend the note indenture to eliminate its restrictive covenants and events of default.

For each $1,000 principal amount of notes, Corus Entertainment will pay $1,081.59, which includes a $20.00 consent payment for those who tendered their holdings before the consent deadline at 5 p.m. ET on Dec. 29.

The company based pricing on $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.

The tender offer deadline was previously extended to midnight ET on Jan. 20 from midnight ET on Jan. 13.

Corus announced the tender offer on Dec. 15.

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

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

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