TV, cable and newspaper owner Block Communications has succeeded with its tender offer to buy back its 8.25% senior notes due 2015. More than 70% of the $150 million outstanding were tendered and Block will exercise its right to redeem the rest.
As of the early tender deadline of January 26, 2012, $105,694,000.00 aggregate principal amount of the notes had been validly tendered and not withdrawn, which represented approximately 70.46% of the outstanding aggregate principal amount of the old notes. No additional notes were tendered by the final deadline of February 9th.
Holders of early tendered notes received $1,030.00 for each $1,000 principal amount of the notes validly tendered, which included the consent payment of $10.00 per $1,000 principal amount, plus any accrued and unpaid interest.
Block Communications says it will now redeem all of the old notes that were not tendered pursuant to its optional redemption rights under the old notes and related indenture.
The buyback of the $150 million in old notes is part of a refinancing under which Block has sold $250 million in new senior notes due 2020, using most of the proceeds to pay off a $115 million term loan as well as buying back the old notes.
Block owns TV stations in Louisville, KY; Boise, ID; Lima, OH; and Decatur, IL. It has cable systems in Ohio and Michigan and daily newspapers in Pittsburgh, PA and Toledo, OH.