LodgeNet tenders for 9½% notes

By Jennifer Chiou

New York, March 26 - LodgeNet Entertainment Corp. announced the start of a tender offer for any and all of its $200 million of 9½% senior subordinated notes due 2013.

The company is also soliciting consents to, among other things, eliminate the covenants in the indenture.

The consent deadline is 5 p.m. ET on April 9. The offer expires at 8 a.m. ET on April 23.

For each $1,000 principal amount, the company said it will determine the payout using the 4.875% Treasury due May 31, 2008 and a fixed spread of 50 basis points. The payout will include a $30.00 consent payment for those who tender by the early deadline.

Pricing will be set on April 9.

LodgeNet said it will fund the offer by increasing the size of the term loan component of the previously announced senior secured credit facilities it expects to enter into as part of the acquisition of Ascent Entertainment Group, Inc., the parent of On Command Corp.

Holders who tender must deliver consents.

The offer is conditioned on sufficient consents, sufficient funding and the closing of the acquisition.

Bear, Stearns & Co. Inc. (call collect 212 272-5112 or 877 696-BEAR) and Credit Suisse Securities (USA) LLC (call collect 212 325-7596) are the dealer managers and solicitation agents. D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 888 644-5854).

LodgeNet is a Sioux Falls, S.D.-based provider of interactive TV and broadband products to hotels.

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