Emmis raises payment for 12½% notes

New York, April 22 - Emmis Communications Corp. said it increased the amount on offer in its tender for any and all of its $286.275 million principal amount at maturity of 12½% senior discount notes due 2011.

It is now offering $1,007.50 per $1,000 principal amount at maturity for notes tendered by the consent deadline, up from $1,000 per $1,000 principal amount at maturity. The price includes a $15.00 per $1,000 consent payment.

After the consent deadline, the payment will be $992.50 per $1,000 principal amount at maturity.

Emmis said on April 15 it has begun a tender offer for any and all of its $286.275 million principal amount at maturity of 12½% senior discount notes due 2011 and that its Emmis Operating Co. subsidiary has begun a separate but concurrent tender offer for any and all of its $300 million principal amount of 8 1/8% senior subordinated notes due 2009.

Each company is also soliciting the consent of their respective noteholders to indenture changes aimed at eliminating substantially all of the restrictive covenants and certain events of default from the respective indentures.

Each company set a consent deadline for its respective offer of 5 p.m. ET on April 26 and said the offers would expire at midnight on May 11, with all deadlines subject to possible extension.

Emmis Operating will offer total consideration of $1,043.13 per $1,000 principal amount of its 8 1/8% notes, which includes a consent payment of $2.50 per $1,000 principal amount, as well as accrued and unpaid interest on the notes.

Holders tendering their notes after the consent deadline will receive the total consideration minus the consent payment amount. Notes may not be tendered without delivering consents to the indenture amendments.

Emmis said that closing of the tender offers would be subject to several conditions, including the completion of any necessary debt financing to fund the tender offers and to refinance the existing Emmis Operating Co. credit facility; the tender of a majority in principal amount of each class of notes by their holders; the receipt of the requisite consents to the proposed indenture changes from the noteholders; and certain other customary conditions.

Goldman, Sachs & Co. (call 212 357-3019 or at 800 828-3182), Deutsche Bank Securities Inc., Banc of America Securities LLC and Credit Suisse First Boston are the dealer managers and solicitation agents for the tender offers and consent solicitations. The information agent for the offer is Georgeson Shareholder Communications Inc. (call 212 440-9800 or at 866-399-8748).

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