Radio One launches exchange offer for all 8 7/8% notes, 6 3/8% notes

By Jennifer Chiou

New York, June 16 - Radio One, Inc. began an exchange offer for all of its 8 7/8% senior subordinated notes due 2011 and 6 3/8% senior subordinated notes due 2013, according to an 8-K filing with the Securities and Exchange Commission.

The company is offering new 11%/12% senior grid notes due 2017 in the exchange.

Radio One is also soliciting consents to amend the note indentures.

The exchange offer expires on July 15.

The Washington, D.C.-based broadcasting company said it already negotiated the terms of the offer with an ad hoc group of holders of about 80% of the existing notes under a support agreement. These holders agreed to tender their notes in the exchange and submit consents.

The support agreement will terminate if the offer is not completed prior to July 31.

Further, the company announced an offering of $100 million of its new 8½%/9% second-priority senior secured grid notes due 2016. The majority of the net proceeds from these notes will be used to fund the acquisition of additional equity interests in TV One, LLC.

The subscription offer expires on June 30.

Radio One is seeking tenders from holders of at least 95% of the existing notes. The offer is also contingent on the completion of the second-lien notes offering as well as a new $400 million senior secured credit facility.

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