Radio One again extends exchange offer for 8 7/8% notes, 6 3/8% notes

By Angela McDaniels

Tacoma, Wash., Sept. 16 - Radio One, Inc. extended the exchange offer and consent solicitation for its 8 7/8% senior subordinated notes due 2011 and its 6 3/8% senior subordinated notes due 2013 to 5 p.m. ET on Sept. 30 from Sept. 15, according to a company news release.

The offer began June 16. It was originally scheduled to expire on July 31 and has been extended multiple times.

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

As of 5 p.m. ET on Sept. 15, investors had tendered approximately 92% of the existing notes. This is up slightly from 91.8% as of Aug. 30.

The conditions needed to complete the exchange offer have not yet been satisfied. According to a previous news release, the offer is conditioned on the receipt of tenders for at least 95% of the notes.

The company has been in discussions with an ad hoc group of noteholders and believes it has made significant progress in reaching an agreement about amendments to the terms of the exchange offer, including the conditions for its completion, and the notes to be issued in the offer.

Radio One has also been discussing an amendment with the lenders under its senior secured credit facility.

As previously reported, the agent under the credit facility delivered a payment blockage notice to the 6 3/8% notes trustee on Aug. 5. As a result, the interest payment on the notes scheduled for Aug. 6 could not be made. The 30-day grace period expired on Sept. 15, marking an event of default.

In addition, the company's forbearance agreement with its lenders relating to some defaults and events of defaults under the credit facility expired on Sept. 10.

Based on its discussions with the noteholder group and its lenders, the company does not expect either to exercise any remedies in the near term. However, the company said it can provide no assurances that the noteholders or its lenders will not exercise any such remedies, that it will ultimately reach an agreement with the noteholder group and its lenders or that a new forbearance agreement will be reached.

The exchange offer is being made only to qualified institutional buyers, institutional accredited investors and non-U.S. persons as defined under the Securities Act.

BNY Mellon Shareowner Services (800 777-3674 or 201 680-6579) is the exchange agent, information agent and subscription agent.

Radio One is a Washington, D.C.-based broadcasting company.

© 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.