Primus Telecom cuts another $12 million in debt

Primus Telecommunications Group Inc. (Caa3) said Tuesday (April 8) that it has reduced its debt load by an additional $12 million, as part of its continuing program further to strengthen its balance sheet,.

Primus said that it had purchased in the open market approximately $10.2 million principal amount of its high-yield debt for approximately $6.3 million in cash, excluding accrued interest payments. The company bought back approximately $3.6 million principal amount of its 9 7/8% senior notes due 2008, and approximately $6.5 million principal amount of its 11¼% senior notes due 2009. The purchased notes had annual interest payments of approximately $1.1 million; the company said the debt-buyback represents $6.1 million in future interest savings, assuming the bonds were held to maturity.

Primus additionally reported that it had made the final principal installment payment of $1.5 million on a major vendor facility. This payment was the final payment on $18 million of original cost of equipment that is now owned by Primus free and clear of liens.

AS PREVIOUSLY ANNOUNCED: Primus, a McLean, Va.-based telecommunications operator, said on Jan. 30 that it had purchased $64.15 million principal amount of its high yield debt for $46.9 million (excluding accrued interest payments).

The company said that in particular, it had bought back $43.65 million principal amount of its 11¾% senior notes due 2004, $18.8 million principal amount of its 9 7/8% senior notes due 2008, and $1.7 million principal amount of its 11¼% senior notes due 2009.

The repurchased debt had annual interest payments of $7.2 million, and represents $19.3 million in future cash interest savings (assuming the bonds were held to maturity). The company said that including the current purchases, it had reduced the outstanding amount of its high yield bonds to $326 million, and had purchased slightly over 50% of the outstanding bond issue that is due in August, 2004.

Primus added that the bond buyback "directly addresses the near-term liquidity issues certain investors had raised." It said that it intends to pursue additional initiatives to reduce its debt further."

On Feb. 13, Primus said that during the 2002 fourth quarter ended Dec. 31, it had purchased $21 million in principal amount of its high-yield notes for $11 million in open-market transactions, resulting in an extraordinary gain for the quarter of $9 million.

Primus also said in its fourth-quarter earnings release announcement that at the end of 2002, it had total long-term debt of $591 million, comprised of $369 million of senior notes, $71 million of convertible debentures, and $151 million of vendor and other debt. During the fourth quarter, the company spent $7 million on capital expenditures, $11 million to purchase long-term debt in the open market, as noted, and approximately $13 million in interest payments.

The company further said that since the end of 2002 it had spent $36 million to purchase $44 million principal amount of senior notes with a maturity date of August 2004. With this purchase, Primus had reduced the amount of senior notes due in August 2004 to $43.6 million. Correspondingly, it said that its run rate interest expense on its total debt would be approximately $14 million per quarter going forward.

Primus additionally said that it would continue to evaluate and determine, depending upon market conditions and other factors, the most efficient use of its capital; among the options it mentioned was possibly purchasing, refinancing, exchanging or retiring certain of the company's outstanding debt securities in the open market "or by other means to the extent permitted by its existing covenant restrictions."

Primus said that while it has suspended discussions it had been conducting with certain of its high-yield bondholders, it "remain[ed] receptive to proposals made by individual holders."

Azteca Holdings extends exchange offer

Azteca Holdings, SA de CV said it extended the expiration date of its exchange offer for its 10½% senior secured notes due 2003 to 5.00 p.m. ET on April 14 from April 7.

The Mexico City holding company which owns 55% of Spanish language broadcaster TV Azteca, SA de CV said that as of the April 7 deadline $61.293 million of the existing notes had been tendered.

Azteca is offering new 10¾% senior secured amortizing notes due 2008 in exchange for the existing notes.

The company is also conducting a consent solicitation to amend the indenture of the existing notes.

The exchange has already been extended from its original expiration date of March 31 at which point $41.993 million of the existing notes had been tendered.

Mrs. Fields Holdings buys back remaining 14% notes

Mrs. Fields' Original Cookies, Inc. said its ultimate parent, Mrs. Fields Famous Brands, Inc., bought the remaining outstanding 14% senior secured discount notes due 2005 issued by Mrs. Fields' Holding Company, Inc.

Mrs. Fields Famous Brands acquired the $27.95 million principal amount of the notes in transactions during the first quarter, with the last purchase being on March 28, according to a filing with the Securities and Exchange Commission.

Following the purchases of notes, there are none outstanding other than those held by Mrs. Fields Famous Brands, the Salt Lake City company said in the SEC filing.

Mrs. Fields Famous Brands has pledged the notes as collateral for borrowings, using the proceeds to buy the notes. The various parties have agreed that no interest will be payable on the notes held by Mrs. Fields Famous Brands unless a default occurs on the loan. Notes not pledged as collateral will be retired and the collateral notes will be retired once release.

Mrs. Fields' Holding will no longer be filing reports with the SEC.

© 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.