Rainbow National Services tenders for all $325 million 10 3/8% notes

By Jennifer Chiou

New York, June 15 - Rainbow National Services LLC announced the start of a cash tender offer for all of its $325 million of 10 3/8% senior subordinated notes due 2014.

The subsidiary of Cablevision Systems Corp. said that the offer is in connection with the previously announced leveraged spinoff of AMC Networks Inc. by Cablevision.

The company is also soliciting consents for proposed amendments to the indenture to eliminate most of the restrictive covenants and some events of default and modify other provisions.

Rainbow National Services is seeking consents from holders of at least a majority of the notes. Those who tender their notes will be deemed to have delivered consent.

The offer will end at 8 a.m. ET on July 14.

Those who tender their notes prior to 5 p.m. ET on June 28 will receive $1,039.58 per $1,000 principal amount, including an early tender premium of $10.00.

Holders will also receive accrued interest.

The offer is contingent on the completion of the spinoff.

Bank of America Merrill Lynch (888 292-0700 or call collect 980 388-9217) and J.P. Morgan Securities LLC (800 245-8812 or call collect 212 270-1200) are the dealer managers. The information agent is MacKenzie Partners Inc. (800 322-2885 or call collect 212 929-5500).

Rainbow is the owner of 24-hour entertainment services operated as parts of Cablevision, a Bethpage, N.Y.-based telecommunications, media and entertainment company.

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