Advanstar announces offer to purchase $140 million of notes with asset-sale proceeds

By Jennifer Chiou

New York, May 24 - Advanstar Communications Inc. launched Tuesday an asset-sale offer to purchase $140 million of its senior secured floating-rate notes due 2008 and 10¾% second priority senior secured notes due 2010 at a price of $1,000 per $1,000 principal amount of the securities, plus accrued and unpaid interest to the payment date.

The offer will expire at 12:01 a.m. ET on June 22, unless extended.

Monday, Advanstar and its affiliates completed the sale of various groups to Questex Media Group, Inc., a company formed by Audax Private Equity Fund, LP.

The indenture requires Advanstar to reinvest the net proceeds from asset sales in assets useful to its business within one year of the closing, or use the proceeds to repay debt senior to the notes covered by the tender offer. If it does not, the company must use proceeds for a tender offer.

Advanstar said that after the asset-sale offer is completed it intends to launch a new tender for $128 million of its floating-rate notes, less the amount of securities tendered in the asset-sale offer. The price on offer is expected to be higher than the $1,000 of the asset-sale offer.

Any remaining proceeds after that may be used to buy back Advanstar's senior subordinated notes due 2011 or its parent company's 15% senior discount debentures due 2011.

New York, N.Y.-based Advanstar is a media company that focuses on fashion, life sciences and power sports industries.

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