By Paul A. Harris
St. Louis, Jan. 30 - American Media Operations Inc. priced $321.25 million of notes in two tranches as part of a distressed exchange offer, according to a market source.
The new issues include $21.25 million of 9% senior PIK notes due May 1, 2013, which were priced at 96.606, and $300 million of 14% senior subordinated partial PIK toggle notes due Nov. 1, 2013, which were priced at 96.221.
The senior subordinated partial PIK toggle notes come with a 10% cash coupon and a 4% PIK toggle feature that includes a 2% toggle and a 2% cash flow toggle, which is not available if annual excess cash flow is greater than $27.5 million.
J.P. Morgan Securities Inc. was the bookrunner.
The American Media Operations 8 7/8% senior subordinated notes due Jan. 15, 2011 were exchanged for the new notes at a dollar price of approximately 75.63, while the 10¼% senior subordinated notes due May 1, 2009 were exchanged at approximately 80.75.
American Media is a Boca Raton, Fla., tabloid publisher.
Issuer: | American Media Operations Inc.
|
Total amount: | $321.25 million (approximate)
|
Bookrunner: | J.P. Morgan Securities Inc.
|
Trade date: | Jan. 29
|
Settlement date: | Jan. 30
|
Distribution: | Rule 144A
|
|
Senior PIK notes
|
Amount: | $21.25 million (approximate)
|
Maturity: | May 1, 2013
|
Coupon: | 9%
|
Price: | 96.606
|
Call protection: | Callable at 103 until Oct. 31, 2009, then 102, 101, par
|
Change-of-control put: | 101%
|
|
Senior subordinated partial PIK toggle notes
|
Amount: | $300 million
|
Maturity: | Nov. 1, 2013
|
Overall coupon: | 14%
|
Cash portion: | 10%
|
PIK portion: | 4% (2% toggle and 2% cash flow toggle (cash flow toggle not available if annual excess cash flow is greater than $27.5 million))
|
Price: | 96.221
|
Call protection: | Callable at 103 until Oct. 31, 2009, then 102, 101, par
|
Change-of-control put: | 101%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.