American Lawyer amends, extends discount note consent solicitation, 9¾% note offer expires

New York, Feb. 10 - American Lawyer Media Holdings Inc. said it amended and extended its consent solicitation for its 12¼% senior discount notes due 2008.

Meanwhile its subsidiary American Lawyer Media Inc. said its consent solicitation expired at 5 p.m. ET on Feb. 10 without the necessary consents being received.

American Lawyer Media Holdings' solicitation will now run through 5 p.m. ET on Feb. 13.

It is now soliciting consents to amendments that would modify the definition of permitted indebtedness to include the 2004 discount notes and the promissory note.

The proposed amendments will allow the company to issue up to $14 million additional principal amount of debt as 2004 discount notes and the promissory note.

The 2004 discount notes would have terms similar to its existing 12¼% senior discount notes due 2008. Proceeds along with proceeds of the promissory note would be used for general corporate purposes, the acquisition of other businesses in the publishing industry and other strategic expansion opportunities. It added that it currently has no agreements or commitments for acquisitions.

The consent solicitation was originally announced on Jan. 23 and extended several times.

Originally the companies had been seeking to amend the indentures for the two series of notes to modify the definition of permitted indebtedness to increase the debt allowed under a credit agreement to $65 million from $40 million.

The New York legal publisher was also seeking to change the definition of permitted lien to increase the allowable liens securing obligations under a credit agreement to $65 million from $40 million.

Holders of the 9¾% senior notes who delivered consent would have received a payment of $5.00 per $1,000 principal amount.

Holders of the discount notes would not have received a payment for delivering consent.

Consents are required from the holders of a majority of the principal amount of each series of notes to modify the indenture.

American Lawyer Media has $175 million of the 9¾% senior notes outstanding of which $7.34 million is held by company Chairman Bruce Wasserstein or his affiliates and $80.26 million principal amount at maturity of the discount notes outstanding of which $39.26 million is held by Wasserstein or his affiliates.

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