Nielsen redeems $1.77 billion, €322 million of securities in 2011

By Toni Weeks

San Diego, March 1 - Nielsen Holdings NV completed a series of redemptions in February and plans to complete an additional redemption in March, according to a 10-K filed Tuesday with the Securities and Exchange Commission.

The redemptions included the following:

• On Feb. 9, the company paid $201 million to redeem $164 million of its outstanding $467 million of 11½% senior discount notes due 2016. A pre-tax debt extinguishment charge of about $34 million for the first quarter of 2011 will be associated with the redemption.

• On Feb. 9, the company paid $129 million to redeem $107 million of its outstanding $307 million of 11 5/8% senior discount notes due 2014. A pre-tax debt of about $23 million for the first quarter of 2011 will be recorded.

• On Feb. 25, the company paid $1.13 billion to fully redeem its $999 million of 12½% senior subordinated discount notes due 2016 at a price of 105.89. Nielsen will record a pre-tax debt extinguishment charge of about $123 million associated with this redemption for the first quarter of 2011.

• Also on Feb. 25, the company paid $251 million to redeem €163 million of 11 1/8% senior discount debenture loan due 2016 at a price of 104.87. It will record a pre-tax debt extinguishment charge of about $26 million associated with this redemption for the first quarter of 2011.

In addition to the completed redemptions, the company expects to pay $244 million on March 2 to fully redeem all €159 million of the 11 1/8% senior discount debenture loan at a price of 104.87. Nielsen will record a pre-tax debt extinguishment charge of about $25 million for the first quarter of 2011 associated with this redemption.

Nielsen said its total indebtedness will be reduced to $7.15 billion from the previous $8.56 billion on Dec. 31, and although the company continues to have significant debt, it believes it will be able to meet both short-term and long-term liquidity requirements, including its senior secured debt service. The company expects the cash flow from its operations, combined with existing cash and available credit, to provide sufficient liquidity to fund current obligations, working capital, restructuring obligations and capital spending over the next year.

In addition, the company said it may purchase, repay, redeem or retire any of its outstanding debt securities from time to time.

Formerly Nielsen Holdings BV, the company is an information and measurement company incorporated in the Netherlands with its principal executive offices located in New York City.

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