CEO Jeff Smulyan’s tender offer to buy out other shareholders of Emmis Communications had been scheduled to expire next Tuesday, June 29th. But there’s been a hang up with a related matter, so the tender is being extended to July 30th.
As part of the effort to take Emmis private, the company is tendering to have holders of its 6.25% Series A Cumulative Convertible Preferred Stock exchange those securities for new 12% PIK (payment-in-kind) Senior Subordinated Notes due 2017. Emmis says it has filed amended disclosure documents related to that offer with the SEC, so that tender hasn’t even officially begun yet.
In order to coordinate the timing of the tenders, JS Acquisition, the company whereby Smulyan intends to buy out other shareholders, has changed the expiration date of its tender to July 30th. That appears to be the target date that Emmis is shooting for as well once it gets SEC approval of its exchange tender.
Smulyan has offered to buy all shares of Emmis that he and financial backer Alden Global Capital don’t own already at $2.40 per share. Including assumed debt, the transaction values Emmis at approximately $670 million.
As of Tuesday, June 22nd, JS Acquisition reported that only 193,943 shares had been tendered. That is not unusual, since major investors typically wait until right before a deadline to tender.