Advanstar $50 million add-on talked at 101 area, pricing Thursday

By Paul A. Harris

St. Louis, Sept. 10 - The price talk is 101 area on Advanstar Communications Inc.'s quick-to-market offering of a $50 million add-on to its 10¾% second priority senior secured notes due Aug. 15, 2010 (B3/B-), according to an informed source.

The deal is expected to price Thursday morning, the source added.

Credit Suisse First Boston is bookrunner on the Rule 144A offering.

On Aug. 4 the company sold the original $230 million of the notes at par to yield 10¾%. They are callable on Feb. 15, 2008 at 105.375, then on Aug. 15, 2008 at 102.688 and at par on Aug. 15, 2009 and thereafter. The notes also contain an equity clawback until Aug. 15, 2006 for 35% at 110.75.

Proceeds, along with a $50 million equity contribution from DLJ Merchant Banking Partners III, LP and related funds will be used to repay approximately $12 million of bank debt, with the remainder to be placed in escrow to fund the pending acquisition of a portfolio of healthcare industry-specific magazines and related custom project services from The Thomson Corp.

Advanstar is a Boston-based business information company.

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