Just a few weeks ago Emmis Communications bought back $34.4 million of its outstanding bank debt for $18.9 million. Now it’s bought back some more – also at a discount price.
This time Emmis did a Dutch auction offering its bankers the deal that it would buy back certain term loans at a discount of 55-60% of the face value. The offer was limited to a total purchase of $10 million. That was fully subscribed by the banks.
Thus, Emmis has bought back $16.7 million of its term loans for the $10 million in cash. The $16.7 million worth of loans have been canceled and forgiven.