ION Media Networks again chooses PIK option for floaters

By Jennifer Chiou

New York, Nov. 13 - ION Media Networks, Inc. said it once more will pay interest on its $405 million floating-rate second-priority senior subordinated notes in kind, this time for the three-month interest period that began on Oct. 15.

It also paid interest in kind for the interest periods that began on April 15 and July 15, according to a company news release.

The company said that the move will reduce its cash interest expenditures by about $9 million in the fourth and first quarters of 2008 and 2009, respectively.

The West Palm Beach, Fla.-based television broadcaster said it expects to use the pay-in-kind option on these notes in future quarters until market conditions improve.

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