LBI Media downsizes eight-year secured notes offering to $220 million

By Paul A. Harris

Portland, Ore., March 9 - LBI Media, Inc. downsized its offering of eight-year first-lien senior secured notes (B2/B-) to $220 million from $240 million on Wednesday, according to an informed source.

Along with the downsizing, the Spanish language broadcaster canceled plans to redeem its 11% senior discount notes due 2013 with proceeds from the deal. About $28.7 million of pro forma cash on balance sheet and a $50 million undrawn revolver will be available to pay off 11% discount notes beginning in October 2012.

Proceeds from the downsized bond deal will be used to repay bank debt.

There were no updates on the timing of the bond offering, which is presently in the market.

Credit Suisse Securities, Macquarie Capital and Wells Fargo Securities are the joint bookrunners for the Rule 144A for life offering.

The notes come with four years of call protection. However, a special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes feature a three-year 35% equity clawback and 101% poison put.

The notes come with a first-priority perfected lien on all property and assets (lenders under the company's revolving credit facility have a "first out" position).

LBI Media is based in Burbank, Calif.

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