LodgeNet considers alternatives to $435 million second-lien notes deal, might amend credit facility

By Paul A. Harris

St. Louis, Sept. 28 - LodgeNet Interactive Corp. is considering alternatives to the $435 million offering of six-year senior secured second-lien notes that it began marketing on Sept. 20, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch and J.P. Morgan Securities Inc. were managing the deal.

The alternatives under consideration include, but are not limited to, a possible amendment of the company's existing credit facility, together with a smaller issue of senior secured notes.

The proceeds from the notes would be used to reduce the amount outstanding under the existing credit facility, thus extending the term of a significant portion of the company's debt beyond the current maturity in 2014.

While a variety of alternatives are under consideration, it is also possible that the company may elect to defer any immediate transaction if the pricing and terms are not acceptable, as the company is compliant with the covenants in its existing credit facility and believes that it will continue to remain compliant, the filing stated.

LodgeNet is a Sioux Falls, S.D.-based provider of interactive media and connectivity solutions to the hospitality industry and interactive patient education, information and entertainment systems to health-care facilities.

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