By Paul A. Harris
St. Louis, Jan. 30 - American Media Operations Inc. priced $321.25 million of notes in two tranches as part of a distressed exchange offer, according to a market source.
The new issues include $21.25 million of 9% senior PIK notes due May 1, 2013, which were priced at 96.606, and $300 million of 14% senior subordinated partial PIK toggle notes due Nov. 1, 2013, which were priced at 96.221.
The senior subordinated partial PIK toggle notes come with a 10% cash coupon and a 4% PIK toggle feature that includes a 2% toggle and a 2% cash flow toggle, which is not available if annual excess cash flow is greater than $27.5 million.
J.P. Morgan Securities Inc. was the bookrunner.
The American Media Operations 8 7/8% senior subordinated notes due Jan. 15, 2011 were exchanged for the new notes at a dollar price of approximately 75.63, while the 10¼% senior subordinated notes due May 1, 2009 were exchanged at approximately 80.75.
American Media is a Boca Raton, Fla., tabloid publisher.
| Issuer: | American Media Operations Inc.
|
| Total amount: | $321.25 million (approximate)
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Trade date: | Jan. 29
|
| Settlement date: | Jan. 30
|
| Distribution: | Rule 144A
|
|
|
| Senior PIK notes
|
| Amount: | $21.25 million (approximate)
|
| Maturity: | May 1, 2013
|
| Coupon: | 9%
|
| Price: | 96.606
|
| Call protection: | Callable at 103 until Oct. 31, 2009, then 102, 101, par
|
| Change-of-control put: | 101%
|
|
|
| Senior subordinated partial PIK toggle notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 1, 2013
|
| Overall coupon: | 14%
|
| Cash portion: | 10%
|
| PIK portion: | 4% (2% toggle and 2% cash flow toggle (cash flow toggle not available if annual excess cash flow is greater than $27.5 million))
|
| Price: | 96.221
|
| Call protection: | Callable at 103 until Oct. 31, 2009, then 102, 101, par
|
| Change-of-control put: | 101%
|
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