Lamar lifts cap on cash tender offer for three series of 6 5/8% notes

By Susanna Moon

Chicago, Jan. 27 - Lamar Advertising Co. said its wholly owned subsidiary Lamar Media Corp. will now purchase up to $600 million principal amount total of its outstanding 6 5/8% senior subordinated notes due 2015, 6 5/8% senior subordinated notes due 2015, series B and 6 5/8% series senior subordinated notes due 2015, series C.

The tender offer cap was raised from $500 million. The other offer terms remain unchanged, according to a company press release.

As previously noted, the purpose of the tender offer is to retire the debt associated with the 6 5/8% notes. The total outstanding principal amount of the 6 5/8% notes is $843.1 million.

Lamar Media is offering to purchase the 6 5/8% notes at a price of $1,005.83 per $1,000 principal amount of notes.

Holders who tender their notes before midnight ET at the end of Feb. 8, the early tender time, will also receive an early tender payment of $20 per $1,000 of notes. Holders who tender their notes after the early tender time will not receive the early tender payment.

Lamar Media will also pay accrued interest to, but excluding, the settlement date. The settlement date for notes tendered by the early tender time will be the date following the early deadline. The final settlement date will be the first business day following the expiration of the offer.

The tender offer will expire at midnight ET on Feb. 24. The offer began on Jan. 26.

Lamar previously said that if the principal amount of notes tendered in the offer exceeded the cap, the notes would be purchased on a pro rata basis, whether tendered before or after the early deadline.

The tender offer is subject to a financing condition.

The tender offer will be funded from the proceeds with of a private offering of $400 million of senior subordinated notes due 2022, together $139.2 million of borrowings under the revolving portion of Lamar Media's senior credit facility, according to a previous release.

In addition, Lamar Media requested a new $100 million term loan A facility under its existing senior credit facility. Lamar Media previously said that if it obtained the $100 million term loan A facility, it could increase the cap of the tender offer for the 6 5/8% notes by $100 million.

J.P. Morgan Securities LLC is the dealer manager for the tender offer. Global Bondholder Services Corp. (866 873-5600, banks and brokers call 212 430-3774) is the depositary and information agent.

Lamar is a Baton Rouge, La.-based outdoor advertising company.

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