Advanstar starts tender for floating-rate notes

New York, June 1 - Advanstar Communications Inc. said it has begun a cash tender offer for its second-priority senior secured floating-rate notes due 2008.

The New York-based media company is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain default provisions. The amendments would also release the security interest in the note collateral. Holders who tender must deliver consents and vice versa.

Advanstar is offering $1,043.00 per $1,000 principal amount of the notes.

Holders who tender and deliver consents by the consent deadline of 5 p.m. ET on June 13 will also receive a consent payment of $30.00 per $1,000 principal amount for a total of $1,073.00 per $1,000 principal amount.

Advanstar noted that because of amortization the outstanding principal amount of each note is $982.50 per $1,000 face amount. Holders will receive 104.3% of the actual principal amount plus a potential 3% consent payment.

The company will also pay accrued interest up to but excluding the settlement date.

Expiration for the tender is 5 p.m. ET on June 28.

Advanstar said it is carrying out the tender to reduce its leverage with part of the proceeds of its sale of various assets to Questex Media Group, Inc.

Credit Suisse First Boston is dealer manager and solicitation agent (contact Liability Management Group at 800 820-1653 or call collect 212 538-0652). The information agent is Morrow & Co., Inc. (800 607-0088).

Advanstar previously announced an asset-sale offer to purchase $140 million of its senior secured floating-rate notes due 2008 and 10¾% second-priority senior secured notes due 2010 at a price of $1,000 per $1,000 principal amount of the securities, plus accrued and unpaid interest to the payment date.

That offer will expire at 12:01 a.m. ET on June 22, unless extended.

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