LodgeNet holders tender nearly all 9½% notes

By Angela McDaniels

Seattle, April 23 - LodgeNet Entertainment Corp. said it received tenders and consents from holders of more than 99% of its outstanding $200 million of 9½% senior subordinated notes due 2013 during a tender offer that ended on Monday.

On April 10, LodgeNet announced that it received enough consents to amend the indenture to eliminate the covenants and that it entered into a supplemental indenture.

The supplemental indenture is now effective.

For each $1,000 principal amount of notes tendered, noteholders will receive $1,090.11, which includes a $30.00 consent payment for those who tendered by April 9, the consent deadline.

The company will also pay accrued interest up to the settlement date.

The tender consideration was set on April 9 using the 4 7/8% Treasury note due May 31, 2008 and a fixed spread of 50 basis points.

Holders who tendered were required to deliver consents.

LodgeNet will use a new $225 million delayed-draw term loan B to fund the repurchase. The term loan is part of the $675 million senior secured credit facility the company entered into as part of its acquisition of Ascent Entertainment Group, Inc., the parent of On Command Corp.

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

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

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