LBI Media starts exchange offers for 8½% notes, Holdings' 11% notes

By Jennifer Chiou

New York, July 17 - LBI Media, Inc. announced the start of private exchange offers for any and all of its 8½% senior subordinated notes due 2017 and any and all of LBI Media Holdings, Inc.'s 11% senior discount notes due 2013.

The offer for the 11% discount notes has certain conditions pertaining to the related consent solicitation, according to a news release.

In connection with the exchange offers, LBI is soliciting consents from holders to amend the note indentures to eliminate certain events of default, modify certain covenants and modify or eliminate certain other provisions, including, in some cases, provisions relating to defeasance.

For each $1,000 principal amount of 8½% subordinated notes, LBI Media, Inc. will issue $400 million of new 11% senior secured notes due 2019 and, with certain exceptions, $200 million of new 11% junior-priority senior secured notes due 2019, including $30.00 principal amount of each series to those who tender for exchange by the early tender deadline of 5 p.m. ET on July 30.

If 40% or less of the old subordinated notes are tendered and accepted after the early deadline, holders will receive $170 principal amount of the junior-priority notes for each $1,000 principal amount of old notes. If 60% or more of the notes are tendered and accepted after the same date, holders of the old subordinated notes will not receive any of the junior notes. Finally, if more than 40% but less than 60% of the old subordinated notes are tendered and accepted, then for each $1,000 principal amount, holders will receive a principal amount of the junior notes equal to the greater of (a) $170 less an amount equal to 4.37 multiplied by the difference of the amount of old notes properly tendered and $91.52 million and (b) zero.

Participating holders of the old subordinated notes will receive accrued interest.

If holders of at least a majority of the old subordinated notes submit consents by the early deadline, LBI Media, Inc. will issue $230 million of the new 11% junior-priority senior secured notes due 2019, including $30.00 principal amount to those who submit consents by the early deadline, for each $1,000 of Holdings' 11% discount notes.

If holders of at least a majority of the old subordinated notes do not submit consents by the early deadline, LBI Media, Inc. will issue $230 million of the new 11% senior secured notes due 2019, including $30.00 principal amount to those who submit consents by the early deadline, for each $1,000 of Holdings' 11% discount notes.

The offers end at midnight ET on Aug. 13.

LBI Media said that it has entered into agreements with certain holders and believes that those holding $52.8 million aggregate principal amount, or 23.1%, of the old subordinated notes and about $1.1 million aggregate principal amount, or 2.5%, of the discount notes will participate.

Holders who tender their notes will also submit consents, but holders may submit consents without tendering their securities.

9¼% notes solicitation

Alongside the above offers and solicitation, the company is also soliciting consents from holders to amend the indenture of its 9¼% senior secured notes due 2019.

The amendments will allow LBI to, among other things, issue the new 11% senior secured notes, the new 11% junior notes and the 11% senior subordinated notes due 2019.

The company is offering a cash payment equal to $5.00 per $1,000 of principal amount of the notes.

This solicitation ends at 5 p.m. ET on Aug. 13.

LBI Media is a Burbank, Calif., owner and operator of Spanish-language radio and television stations.

© 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.