World Golf League

[Peaser]

Paxson plans to clear out, restart debt
Friday December 2, 4:38 pm ET


In a pair of related financial moves, Paxson Communications Corp. has offered cash for all three issues of its outstanding debt and has disclosed its plans to offer more debt.
The first disclosure from the West Palm Beach-based television broadcaster covers $365 million in outstanding principal of senior secured floating rate notes due 2010, $496.3 million in outstanding principal at maturity of its 12.25 percent senior subordinated discount notes due 2009 and $200 million in outstanding principal of 10.75 percent senior subordinated notes due 2008.


Payment, Paxson (AMEX: PAX - News) said, would be:

$1,002.50 for each $1,000 in principal of the secured notes $1,059.50 for each $1,000 in principal at maturity of the discount notes $1,056.25 for each $1,000 in principal of the subordinated notes

In each case, Paxson said it would pay $20 per $1,000 in principal amount (or, for the discount notes, principal at maturity) to holders who validly tender their notes and deliver their consents before the consent expiration date.
Consents are necessary because Paxson's offer includes amendments that would eliminate substantially all of the debt's principal restrictive covenants and also amend certain other provisions.

The consent expiration date is 5 p.m., Dec. 14. The tender offer is to expire at midnight, Dec. 29.

Holders who tender their notes after the consent expiration date would receive less money:

$982.50 for each $1,000 in principal for the secured notes $1,039.50 for each $1,000 in principal at maturity for the discount notes $1,036.25 for each $1,000 in principal for the subordinated notes

Citigroup Corporate and Investment Banking is dealer manager and solicitation agent for the tender offer and consent solicitation. The depositary for the tender offer is Global Bondholder Services Corp.
Paxson said it intends to fund the tender offer with proceeds from new debt.

That proposed debt is $700 million in total principal of floating rate first priority senior secured notes due 2012 and $430 million in total principal of floating rate second priority senior secured notes due 2013.

Shares closed unchanged at 95 cents. The 52-week high was $2.15 on Jan. 6. The 52-week low was 37 cents on Nov. 2.

Published December 2, 2005 by the South Florida Business Journal