American Media Operations extends offers for 14% notes, 9% PIK notes

By Angela McDaniels

Tacoma, Wash., Aug. 25 - American Media, Inc. said American Media Operations, Inc. extended the private exchange offer for its $356 million of 14% senior subordinated notes due 2013 and tender offer for its $23.7 million of 9% senior pay-in-kind notes due 2013.

The expiration date was extended to 9 a.m. ET on Sept. 15 from Aug. 25. It was previously extended from Aug. 11.

American Media Operations is considering some amendments to the exchange offer for the 14% notes, but in the meantime all other terms and conditions for the offers remain in effect, according to a company news release.

As of 5 p.m. ET on Aug. 24, approximately $344.2 million principal amount, or 96.7%, of the 14% notes and approximately $23.7 million principal amount, or 99.9%, of the PIK notes had been tendered.

American Media Operations is offering $269.52 in cash and 335.62 shares of common stock for each $1,000 principal amount of 14% notes and $1,020 in cash for each $1,000 principal amount of 9% PIK notes.

The company is also soliciting consents to amend the indentures governing the notes to remove substantially all of the restrictive covenants and some events of default.

The offers began July 15.

American Media is a New York-based publisher of celebrity journalism and health and fitness magazines.

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