Advanstar to buy $117.8 million floating-rate notes in tender

New York, June 29 - Advanstar Communications Inc. said it has completed its offer to buy its second-priority senior secured floating-rate notes due 2008, receiving tenders of $117.802 million of the securities.

At its previous announcement on June 14 the company said it received the necessary consents to amend the note indenture and also said that it will pay the full amount - including the consent payment - to all holders who tender by the expiration of its tender offer at 5 p.m. ET on June 28. Previously investors had to tender by the consent deadline to receive the consent payment.

Advanstar announced on June 1 that it had begun a cash tender offer for the notes, and the New York-based media company said it was also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants and certain default provisions. The amendments would also release the security interest in the note collateral. Holders who tender must deliver consents and vice versa.

Advanstar is offering $1,043.00 per $1,000 principal amount of the notes.

Holders will also receive a consent payment of $30.00 per $1,000 principal amount for a total of $1,073.00 per $1,000 principal amount.

Advanstar noted that because of amortization the outstanding principal amount of each note is $982.50 per $1,000 face amount. Holders will receive 104.3% of the actual principal amount plus a potential 3% consent payment.

The company will also pay accrued interest up to but excluding the settlement date.

Advanstar said it is carrying out the tender to reduce its leverage with part of the proceeds of its sale of various assets to Questex Media Group, Inc.

Credit Suisse First Boston is dealer manager and solicitation agent (contact Liability Management Group at 800 820-1653 or call collect 212 538-0652). The information agent is Morrow & Co., Inc. (800 607-0088).

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