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Emmis increases minimum price in tender offer for 6.25% convertibles
By Angela McDaniels
Tacoma, Wash., Dec. 12 - Emmis Communications Corp. increased the minimum tender price in the modified Dutch auction tender offer for its 6.25% series A cumulative convertible preferred stock, according to a company news release.
The minimum price was increased to $14.00 from $12.50. The maximum price remains $15.56.
Any convertibles previously tendered at a price below $14.00 will be deemed to have been tendered at $14.00.
As previously reported, the company is offering to purchase up to $6 million of the convertibles.
The offer began on Dec. 1 and will end at 5 p.m. ET on Dec. 30.
Depending on the final purchase price, Emmis could purchase between 385,604 and 480,000 convertibles if the offer is fully subscribed. This would be 14.8% to 18.4% of the issued and outstanding convertibles as of Nov. 30.
Based on the number of convertibles tendered and the prices specified by holders, Emmis will determine the lowest price that will enable it to purchase up to $6 million of convertibles at that price.
If the offer is oversubscribed, Emmis will purchase the convertibles on a pro rata basis.
The offer will be financed with amounts drawn under Emmis' Nov. 10 note purchase agreement with Zell Credit Opportunities Master Fund, LP.
Zell agreed to buy up to $35 million of notes due February 2015 from Emmis on up to four separate occasions by Feb. 2. Interest on the notes will accrue quarterly at a rate of 22.95% per year and is not payable in cash.
The tender offer is not conditioned on any minimum number of convertibles being tendered, but it is subject to other conditions.
BNY Mellon Shareowner Services (866 301-0524 or collect 201 680-6579) is the information agent and depositary for the tender offer.
Indianapolis-based Emmis operates radio stations and publishes magazines.
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