Nielsen to redeem $1.33 billion of four note series with IPO proceeds

By Susanna Moon

Chicago, Aug. 17 - Nielsen Holdings BV will redeem about $1,325,000,000 principal amount of four series of notes using proceeds from a $2.01 billion initial public offering of common stock, according to an S-1 filing with the Securities and Exchange Commission.

Nielsen will use proceeds from the stock issue to redeem some of the notes in the following manner:

• $914 million to redeem about $870 million principal amount of its 10% senior notes due 2014;

• $195 million to redeem about $163 million principal amount, or about $175 million face amount, of its 11½% senior notes due 2016;

• $128 million to redeem about $106 million principal amount, or about $115 million face amount, of its 11 5/8% senior notes due 2014; and

• $194 million to redeem about $186 million principal amount of its 9% senior notes due 2014.

As of June 30, the following amounts were outstanding:

• $869 million principal amount of the 10% notes due Aug. 1, 2014;

• $465 million principal amount ($500 million face amount) of 11½% senior notes due May 1, 2016;

• $304 million principal amount ($330 million face amount) of 11 5/8% senior notes due Feb. 1, 2014; and

• €150 million principal amount of 9% notes due Aug. 1, 2014.

Nielsen said the redemptions of the 11½% notes and 11 5/8% notes will be made under a provision of the indenture that permits the company to redeem up to 35% of the total principal amount of the notes with proceeds of some equity offerings.

The company will pay accrued interest on the notes through the redemption date with cash generated from operations.

Proceeds also will be used to repay about $127 million of senior secured term loans due 2013.

Nielsen Holdings, formerly Nielsen Co., is a Diemen, the Netherlands-based market research firm that keeps tabs on what people are buying and watching.

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