Allen Media upsizes to $350 million, hikes discount on tap of 10½% notes to 98.5; pricing Thursday

By Paul A. Harris

Portland, Ore., July 28 – Allen Media LLC and Allen Media Co-Issuer Inc. upsized an add-on to their 10½% senior notes due Feb. 15, 2028 (existing ratings Caa1/B-) to $350 million from $340 million, according to a syndicate source.

Along with the upsize came a substantial increase in the discount talk. Revised talk has the deal coming at 98.5, versus earlier official talk of par to 101.

Along with revised talk came a structural change increasing the first call premium by 512.5 basis points. The notes, as modified, become callable on Feb. 15, 2023 at 113, increased from the original first call premium of 107.875. Subsequent to the first call, premiums revert to the values set when the original deal was priced: 105.25 on Feb. 15, 2024, 102.625 on Feb. 15, 2025, par on Feb. 15, 2026 and thereafter.

The deal is set to price on Thursday.

Bookrunner RBC Capital Markets LLC will bill and deliver.

The Los Angeles-based media content and technology company plans to use the proceeds to fund acquisitions, including the KITV designation.

The original $300 million issue priced in February 2020.

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