Radio One Moving Forward With Note Exchange
November 22, 2010 at 4:09 AM (PT)
RADIO ONE announced FRIDAY (11/19) that it received received sufficient consent to its amended exchange offer designed to refinance substantially all of its existing debt under its 8 7/8% Senior Subordinated Notes due 2011 and its 6 3/8% Senior Subordinated Notes due 2013. The offer expired FRIDAY at 5p (ET) with about 98% of the combined aggregate principal amount of the notes being validly tendered and not withdrawn, and 96% of the 2011 notes being tendered.
The amended exchange offer will trade $1,000 principal amount of 12.5%/15% Senior Subordinated Notes due 2016 for the same amount of the 2011 Notes; and $950 principal amount of the new notes for each $1,000 of the 2013 Notes, along with deletion of substantially all of the covenants in the notes.
The new notes have been amended to provide for 66 months maturity, interest of 12.5% per annum if paid in cash or 15% per annum if paid partially in cash and partially in additional notes, and a subordination limit of $415 million. The company announced on NOVEMBER 15th that it received consent to the amendments to the tender offer from holders of the existing notes to reduce the minimum tender condition and move ahead with the exchange.