New Issue: American Media Operations $150 million add-on yields 10.157%

By Paul A. Harris

St. Louis, Mo., Feb. 11 - American Media Operations, Inc. priced a $150 million add-on to its 10¼% senior subordinated notes due May 1, 2009 (B2/B-) at 100.50 for a yield to maturity of 10.157%, according to a syndicate source.

Price talk had been 100-101, according to a market source.

JP Morgan was the bookrunner for the Rule 144A offering and Bear Stearns & Co.was co-manager.

Proceeds will be used to repay bank debt and to pay a dividend to the company's parent.

The publishing company is based Boca Raton, Fla.

Issuer:	American Media Operations, Inc.
Amount:	$150 million
Type:	Add-on to 10¼% senior subordinated notes due May 1, 2009
Bookrunner:	JP Morgan
Co-manager:	Bear Stearns
Coupon:	10¼%
Price:	100.50
Yield:	10.157%
Spread:	563 basis points
Call features:	Callable from May 1, 2004 at 105.125, 103.417, 101.798, par on May 1, 2007 and thereafter
Equity clawback:	Until May 1, 2002 for 35% at 110.25
Settlement date:	Feb. 14
Ratings:	Moody's: B2
	Standard & Poor's: B-

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