Paxson reworking its bonds
With its long-running feud with NBC Universal now settled (11/8/05 TVBR #219), Paxson Communications is reworking its finances. It is selling 1.13 billion in new bonds and tendering to buy back over one billion in existing, high yield bonds. Before this month is out, Paxson (when will the name be changed?) plans to make a private placement of up to 700 million in floating rate first priority senior secured notes due 2012 and approximately 430 million in floating rate second priority senior secured notes due 2013. At the same time, it is tendering for any and all of its 365 million outstanding of senior secured floating rate notes due 2010, approximately 496.3 million of 12.25% senior subordinated senior discount notes due 2009 and 200 million of 10.75% senior subordinated notes due 2008.
Here are the terms of the tender.
The total consideration to be paid for each validly tendered Note will be equal to:
* in the case of the Secured Notes, an amount equal to $1,002.50 for each $1,000 aggregate principal amount;
* in the case of the Discount Notes, an amount equal to $1,059.50 for each $1,000 aggregate principal amount at maturity; and
* in the case of the Subordinated Notes, an amount equal to $1,056.25 for each $1,000 aggregate principal amount.
In each case, the total consideration includes a consent payment of $20.00 per $1,000 principal amount (or, in the case of Discount Notes, principal amount at maturity) of the Notes which will be payable only to holders who tender their Notes and validly deliver their consents prior to the consent expiration date. Holders who tender their Notes after the consent expiration date will receive the applicable total consideration less the consent payment, or:
* in the case of the Secured Notes, an amount equal to $982.50 for each $1,000 aggregate principal amount;
* in the case of the Discount Notes, an amount equal to $1,039.50 for each $1,000 aggregate principal amount at maturity; and
* in the case of the Subordinated Notes, an amount equal to $1,036.25 for each $1,000 aggregate principal amount.
In addition to the consideration described above, holders of Secured Notes or Subordinated Notes who validly tender and do not withdraw their Secured Notes or Subordinated Notes in the tender offer will also receive accrued and unpaid interest from the last interest payment date to, but not including, the tender offer settlement date.
The consent expiration date for the consent solicitation with respect to the Notes is 5:00 p.m., New York City time, on December 14, 2005, unless earlier terminated or extended. The tender offer will expire at 12:00 midnight, New York City time, on December 29, 2005, unless earlier terminated or extended.
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