American Media bondholders agree to swap bonds for common stock

By Caroline Salls

Pittsburgh, July 2 - American Media, Inc. has reached an agreement with 90% of its bondholders to exchange those bonds for shares of the company's common stock, according to a company news release.

After the exchange, American Media said its debt will be reduced by $200 million and its leverage reduced to 5.1x from 7.2x.

In addition, the company said the transaction gives it significant flexibility, with $50 million of free cash flow on a pro forma basis.

American Media said it plans to launch a debt-for-equity exchange in July and expects it to be concluded in August.

"I am very grateful to our bondholders for having the confidence and faith in AMI to consummate this transaction," chairman, president and chief executive officer David J. Pecker said in the release.

American Media is a Boca Raton, Fla., magazine publisher.

© 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.