American Media plans refinancing of 10¼% notes, 8 7/8% notes

By Jennifer Chiou

New York, Aug. 14 - American Media Operations, Inc.'s board has decided to explore strategic alternatives related to the company's planned refinancing of its 10¼% series B senior subordinated notes due May 1, 2009 and its 8 7/8% senior subordinated notes due Jan. 15, 2011, according to a 10-Q filing with the Securities and Exchange Commission.

The company said that its revolving credit facility matures in January 2012 and its term facility matures in January 2013, but both will mature on Feb. 1, 2009 if it does not refinance at least $389.5 million of its 10¼% notes on or before Feb. 1, 2009.

In addition, the revolving facility and the term facility both will mature on Oct. 15, 2010 if American Media does not refinance at least $145.5 million of its 8 7/8% notes on or prior to Oct. 15, 2010.

The company believes that it is probable that it will be able to complete a refinancing of the 10¼% notes on or prior to Feb. 1, 2009.

The company's board decided to explore a full range of strategic alternatives, including the raising of capital, the sale of assets, the refinancing of its existing debt or other transactions that could materially change its business or capital structure.

American Media is a Boca Raton, Fla., magazine publisher.

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