American Media again extends exchange offers; holders consent to deferred coupon on 14% notes

By Susanna Moon

Chicago, Oct. 26 - American Media, Inc. said American Media Operations, Inc. again extended the private exchange offer for their $356 million of 14% senior subordinated notes due 2013 and the tender offer for its $23.7 million of 9% senior pay-in-kind notes due 2013.

The offers will now expire at 5 p.m. ET on Nov. 1. They were extended from 5 p.m. ET on Oct. 26 and, prior to that, Oct. 15, Sept. 30, Sept. 15, Aug. 25 and Aug. 11.

As of 5 p.m. ET on Oct. 25, holders had tendered $344.2 million principal amount, or 96.7%, of the 14% notes and $23.7 million principal amount, or 99.9%, of the PIK notes. These figures are unchanged from Oct. 15, Sept. 29 and Aug. 24.

The company also said it received the needed consents to defer the upcoming coupon payment on the 14% notes, which is due Nov. 1, until Jan. 3. This separate consent solicitation began on Oct. 12 and ended at 5 p.m. ET on Oct. 26.

As a result, American Media said it expects to execute a supplemental indenture within the next few days to amend the notes.

The delay will help the company preserve cash, it said.

The company previously said it is considering some amendments to the offers, but that in the meantime all other terms and conditions for the offers remain in effect.

American Media Operations is offering $269.52 in cash and 335.62 shares of common stock for each $1,000 principal amount of 14% notes and $1,020 in cash for each $1,000 principal amount of 9% PIK notes.

As part of the exchange offer and tender offer, the company is also soliciting consents to amend the indentures governing the notes to remove substantially all of the restrictive covenants and some events of default.

The offers began July 15.

American Media is a New York-based publisher of celebrity journalism and health and fitness magazines.

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