| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders 2009 > News item |
Morris Publishing to launch notes exchange offer, plan solicitation
By Caroline Salls
Pittsburgh, Nov. 2 - Morris Publishing Group, LLC has agreed to the terms of a definitive restructuring support agreement with the holders of more than 70% of the outstanding $278.5 million principal amount of the company's 7% senior subordinated notes due 2013, according to a company news release.
Under the agreement, Morris Publishing will launch an exchange offer to all holders of existing notes to surrender their notes, including accrued interest, in exchange for $100 million of new second-lien secured notes due 2014.
The company said the new notes will bear interest of at least 10%, but could bear interest up to 15%, some of which may be paid in kind, until Morris Publishing repays its remaining senior debt.
If the exchange offer is not accepted by holders of at least 99% of the total principal amount of existing notes, then Morris Publishing said it has agreed to file a pre-packaged bankruptcy plan for the notes exchange.
As a result, the company will simultaneously solicit consents from the existing noteholders for the pre-packaged plan.
According to the release, holders of more than 70% of the outstanding principal amount of existing notes have agreed to support the exchange offer and the pre-packaged bankruptcy plan.
Upon the exchange, $110 million of Morris Publishing's existing $136.5 million in senior debt will be satisfied or contributed to capital by affiliates of Morris Publishing.
Morris Publishing owns and operates newspapers, city magazines and free community publications. The company is an affiliate of Morris Communications, a privately held media company based in Augusta, Ga.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.