Reader's Digest gets consents to make required tender at 95% of par

By Angela McDaniels

Tacoma, Wash., May 11 - Reader's Digest Association, Inc. and RDA Holding Co. received enough consents to amend the indenture governing their floating-rate senior secured notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

Consents were needed from the holders of more than 75% of the outstanding notes.

The indenture was amended May 10 to allow the company to make a collateral disposition offer for the notes at 95% of par in connection with its sale of Allrecipes.com.

Under the terms of the notes, the company is required to offer to buy back the maximum principal amount of notes that may be purchased using the excess collateral proceeds of the sale. Prior to the amendment, the company was required to make the offer at par.

The company sold Allrecipes.com to Meredith Corp. for net proceeds of $150 million. The sale closed on Feb. 29, and the company used $85 million of the proceeds to repay bank loan debt.

Reader's Digest is a New York-based multimedia publisher and direct marketer.

© 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.