Bonten talks $125 million eight-year toggle notes at 9 1/8% area

By Paul A. Harris

St. Louis, May 21 - Bonten Media Acquisition Co. set price talk for its $125 million offering of eight-year senior subordinated pay-in-kind toggle notes (Caa1/CCC+) at the 9 1/8% area on Monday, according to an informed source.

The transaction, which is being led by bookrunner Lehman Brothers and co-manager Wachovia Securities, is expected to price on Tuesday.

The Rule 144A for life and Regulation S notes come with four years of call protection and a three-year 35% equity clawback.

Proceeds will be used to fund the acquisition of BlueStone Television LLC from Diamond Castle Holdings LLC.

At the closing of the acquisition, Bonten Media Acquisition Co. will buy all the stock of BlueStone and then merge with and into BlueStone with BlueStone continuing as the surviving corporation.

The surviving entity will be named Bonten Media Group, Inc., a Wichita, Kan.-based operator of middle market television stations.

The company's markets include Tri-Cities in Tennessee and Virginia; Greenville, New Bern and Washington in North Carolina; Chico, Redding and Eureka in California; Abilene, Sweetwater and San Angelo in Texas; and Missoula, Butte, and Bozeman in Montana.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.