Advanstar extends tenders for 10¾% notes, 12% notes, 15% debentures

By Jennifer Chiou

New York, May 18 - Advanstar, Inc. and Advanstar Communications Inc. said they prolonged the tender offers for Advanstar Communications' 10¾% second priority senior secured notes due 2010, Advanstar Communications' 12% senior subordinated notes due 2011 and Advanstar's 15% senior discount debentures due 2011.

The offers will now expire at 11:59 p.m. ET on May 30, pushed back from 5 p.m. ET on May 18. The expiration was extended to coincide with settlement of an acquisition, which is expected to be May 31.

By the consent deadline of 5 p.m. ET on May 2, the company had consents for all the 10¾% notes, 93.41% of the 12% notes and 97.96% of the 15% notes, enough to amend the indentures.

The company had been seeking consents to amend the note indentures to eliminate substantially all of the restrictive covenants and some default provisions. The proposed amendments to the 10¾% notes would also release the security interest in the collateral.

The company is conducting the consent solicitation and a tender offer for the notes in connection with Advanstar Holdings Corp.'s pending acquisition by an investor group led by Veronis Suhler Stevenson. Advanstar Holdings is the parent company of Advanstar and Advanstar Communications.

For each $1,000 principal amount of 10¾% notes tendered before the consent deadline, the company will pay an amount based on the yield to maturity of a reference Treasury as of 10 a.m. ET on May 3.

The payout for each $1,000 principal amount of 12% notes will be $1,013.50. For each $1,000 principal amount of 15% debentures, the payout will be $1,012.50.

For each series of notes, the payout will include a consent payment of $30.00 per $1,000 principal amount of notes tendered by the consent deadline. Notes tendered after that time will receive the same amount, less the consent payment.

Based on a May 31 settlement date and using the Treasury level at 10 a.m. ET on May 2, the payments will be $1,057.53 per $1,000 principal amount of the 10¾% notes.

Settlement of the tender offer is conditional on completion of the acquisition.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-0652) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (888 628-8208) is the information agent.

Advanstar Communications is a New York-based media company. Advanstar is its parent company.

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