FriendFinder to use IPO proceeds to pay down two series of 14% notes

By Toni Weeks

San Diego, May 11 - FriendFinder Networks Inc. said that the proceeds from its planned $50 million initial public offering of common stock will be used to repay its $39 million of first-lien notes and $1.8 million of cash pay second-lien notes at a redemption price of 110.

FriendFinder plans to sell 5 million shares at $10 per share. The shares have been approved for listing on Nasdaq under the symbol "FFN," according to a 424B4 filing with the Securities and Exchange Commission.

Both series of notes have a maturity date of Sept. 30, 2013 and an interest rate of 14%. As of Dec. 31, the company had $305 million of the first-lien notes and $13.8 million of cash pay second-lien notes outstanding.

FriendFinder is an internet-based social networking and multimedia entertainment company located in Boca Raton, Fla.

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