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Guitar Center to redeem 11% notes
New York, June 9 - Guitar Center, Inc. said it expects to use proceeds of its planned offering of $90 million 10-year convertible notes to redeem all its outstanding 11% senior notes due 2006 and to repay credit facility borrowings.
The Westlake Village, Calif. guitar and instrument retailer had $66.7 million of the 11% notes outstanding as of March 31, according to its most recent 10-Q filing with the Securities and Exchange Commission.
Cumulus Media completes tender
New York, June 9 - Cumulus Media Inc. (B3) said that it has called for redemption all its $13.691 million of remaining outstanding 10 3/8% senior subordinated notes due 2008. The notes are to be redeemed on July 3 at 105.188% of the principal amount, plus accrued and unpaid interest through July 2.
U.S. Bank NA, the notes' trustee, will handle the redemption transaction.
As previously announced, Cumulus, an Atlanta-based radio station ownership company, originally issued $160 million of the notes in June 1998; that amount had been reduced to an estimated $102.477 million by early April of this year, when Cumulus announced a tender offer and consent solicitation. In that tender offer, which was completed on April 30, the company purchased $88.786 million of notes, leaving $13.691 million of the notes currently outstanding.
Cumulus separately but concurrently announced in the June 9 news release that it was also calling for the redemption of all of its 13¾% cumulative exchangeable redeemable Series A preferred Stock due 2009.
Cumulus said that the 9,268 shares of the preferred stock currently outstanding, valued at $9.268 million, are to be redeemed on July 7, at a redemption price of 106.875% of the stated value.
SunTrust Bank will act as the transfer agent for the preferred stock redemption transaction.
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