Advanstar seeks tenders, consents for 10¾% notes, 12% notes, 15% debentures

By Laura Lutz

Des Moines, April 20 - Advanstar, Inc. and Advanstar Communications Inc. announced that they are conducting a tender offer and consent solicitation for Advanstar Communications' 10¾% second priority senior secured notes due 2010, Advanstar Communications' 12% senior subordinated notes due 2011 and Advanstar's 15% senior discount debentures due 2011.

The company is seeking consents to amend the note indentures to eliminate substantially all of the restrictive covenants and some default provisions. The proposed amendments to the 10¾% notes would also release the security interest in the collateral.

The company is conducting the offer in connection with Advanstar Holdings Corp.'s pending acquisition by an investor group led by Veronis Suhler Stevenson. Advanstar Holdings is the parent company of Advanstar and Advanstar Communications.

The offer is currently set to expire at 5 p.m. ET on May 18. The expiration will be extended to coincide with settlement of the acquisition, which is not expected to close before May 31.

The consent solicitation will expire at 5 p.m. ET on May 2.

For each $1,000 principal amount of 10¾% notes tendered before the consent deadline, the company will pay an amount based on the yield to maturity of a reference Treasury as of 10 a.m. ET on May 3.

The payout for each $1,000 principal amount of 12% notes will be $1,013.50. For each $1,000 principal amount of 15% debentures, the payout will be $1,012.50.

For each series of notes, the payout will include a consent payment of $30.00 per $1,000 principal amount of notes tendered by the consent deadline. Notes tendered after that time will receive the same amount, less the consent payment.

Settlement of the tender offer is conditional on completion of the acquisition.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-0652) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (888 628-8208) is the information agent.

Advanstar Communications is a New York-based media company. Advanstar is its parent company.

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