Radio One announced it intends to offer $335 million in aggregate principal amount of senior subordinated notes due 2020 in a private offering. The Notes will be guaranteed by certain of the company’s existing and future domestic subsidiaries and any other subsidiaries that guarantee any of its senior credit facility, other syndicated bank indebtedness or capital markets securities.
Radio One intends to use the net proceeds from the offering to repurchase or otherwise redeem all of the amounts currently outstanding under its 12.5%/15.0% senior subordinated notes due 2016 and to pay the related accrued interest, premiums, fees and expenses associated therewith.
So, in conjunction with the announcement, Radio One also announced a cash tender offer to purchase any and all of its outstanding 12.5%/15.0% Senior Subordinated Notes due 2016.
The Tender Offer will expire at 11:59 ET on 2/24. Under the terms, holders of the Subordinated Notes who validly tender and do not validly withdraw their Subordinated Notes and consents prior to 5:00 p.m. ET on 2/7 will receive an amount equal to $1,007.50 per $1,000.00 in principal amount of Subordinated Notes validly tendered and not validly withdrawn, which amount includes an early tender premium equal to $30.00 per $1,000.00 in principal amount of the Subordinated Notes validly tendered and not validly withdrawn. Holders of the Subordinated Notes who validly tender their Subordinated Notes after the Early Tender Time but on or before the Expiration Time will receive an amount equal to $977.50 per $1,000.00 in principal amount of Subordinated Notes validly tendered. Holders whose Subordinated Notes are purchased in the Tender Offer will also be paid accrued and unpaid interest from the most recent interest payment date on the Subordinated Notes to, but not including, the applicable settlement date.