Lamar buys back $483.7 million of 6 5/8% notes in tender offer so far

By Susanna Moon

Chicago, Feb. 9 - Lamar Advertising Co.'s wholly owned subsidiary Lamar Media Corp. said holders tendered $582.9 million principal amount of three series of 6 5/8% notes as of midnight ET on Feb. 8, the early tender date, and the company accepted $483.7 million of the notes for purchase.

The company is offering to purchase to up to $700 million of its 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 total outstanding principal amount of the notes is $843.1 million.

The tender offer will continue until midnight ET on Feb. 24. It began on Jan. 26.

Lamar Media will pay $1,025.83 per $1,000 principal amount for notes tendered by the early tender time, which includes early tender payment of $20.00 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, which will be Feb. 9 for the early tenders. The final settlement date will be the first business day following the expiration of the offer.

The company increased the maximum amount of notes it will purchase in the offer to $700 million on Feb. 6, from $600 million. Before that, the tender offer cap was $500 million.

As previously reported, the purpose of the tender offer is to retire the debt associated with the 6 5/8% notes.

In connection with the tender cap increase, Lamar Media requested a new $100 million term loan A facility under its existing senior credit facility. Lamar Media previously noted 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.

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 also subject to a financing condition that includes the proceeds 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.

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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