AOL tweaks credit terms with JPMorgan to allow issue of convertibles

By Susanna Moon

Chicago, Aug. 14 – AOL Inc. amended its credit agreement Wednesday with JPMorgan Chase Bank, NA as administrative agent to permit the issue of convertible notes, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for amendments to the debt, restricted payment and swap agreement negative covenants and the cross-default event of default to accommodate the issue of convertible notes and the entry into certain note hedge and warrant transactions, the filing noted.

AOL priced an upsized $330 million of five-year convertible senior notes after the market close on Aug. 13 at par to yield 0.75% with an initial conversion premium of 35%, as reported by Prospect News.

The Rule 144A deal was initially talked at $300 million in size, and there is a $49.5 million greenshoe, which was upsized from $45 million.

New York-based AOL is a digital brands, products and services company.

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