Ion revises exchange offer for preferreds


Ion Media Networks will give preferred shareholders a bit of extra time to decide whether to take it up on an offer to exchange their preferred shares for new bonds. If less than half are tendered by July 11th, a one-day extension from the original July 10th deadline, they'll get an extra 10 days to think it over. Ion has not changed any of the financial terms of the tender offer. But the exact split of new notes and new preferred stock to be delivered in the exchange depends on whether or not 50% or more of each issue is tendered. So, if the 50% threshold is not achieved by July 11th, preferred shareholders will get an extra 10 days to decide whether or not to participate in the exchange offer.

As previously reported (6/26/07 TVBR #124), Ion is facing two lawsuits from preferred shareholders who contend that the exchange offer is unfair. The courts, however, have thus far refused to block the tender.