By Lisa Kerner
Charlotte, N.C., Nov. 14 - Emmis Communications Corp. agreed to sell a total of $35 million of notes to Zell Credit Opportunities Master Fund, LP on up to four separate occasions before Feb. 2 under a Nov. 10 note purchase agreement, according to a form 8-K filed with the Securities and Exchange Commission.
Interest on the notes is not payable in cash and will accrue quarterly at a rate of 22.95% per year.
The notes mature in February of 2015.
Proceeds will be used to enter into agreements enabling Emmis to ultimately acquire its 6.25% series A cumulative convertible preferred stock through privately negotiated transactions with individual convertibles holders using a total return swap or escrow arrangement and/or through a tender offer.
Restrictions under the note purchase agreement prohibit any dividend payments on Emmis' capital stock and Emmis' ability to incur additional debt.
There are also restrictions on repayment of the notes prior to their final maturity date.
Emmis is an Indianapolis-based diversified media company.
| Issuer: | Emmis Communications Corp.
|
| Issue: | Notes
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| Amount: | $35 million
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| Maturity: | February 2015
|
| Coupon: | 22.95%
|
| Purchaser: | Zell Credit Opportunities Master Fund, LP
|
| Pricing date: | Nov. 10
|
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