NEW YORK, March 2, 2016 /PRNewswire/ -- American Media, Inc. (AMI) today announced that certain holders intend to exchange $60 million in aggregate principal amount of the company's first lien notes due in 2017 for approximately $73 million of the company's existing 7% second lien notes that are due in 2020.
This exchange will reduce the company's outstanding aggregate principal amount of first lien notes to approximately $213 million, while improving the company's capital structure and its ability to refinance these notes later this year.
AMI also announced that it expects to issue to certain noteholders additional 7% second lien notes due 2020. AMI expects to return the proceeds from the issuance to its investors.
"Due to the continued support and confidence of our noteholders, we are able to make this strategic move to improve our balance sheet for a potential refinancing of our first lien notes," said David J. Pecker, Chairman, President and CEO of AMI.
The transactions are conditioned upon the company receiving the requisite consents and approvals from its lenders. "Our largest lenders have indicated that they support these transactions," added Mr. Pecker.
About American Media, Inc.:
American Media, Inc. (AMI) owns and operates the leading print and digital celebrity and active lifestyle media brands in the United States. AMI's titles include National Enquirer, Star, OK!, Globe, National Examiner, Soap Opera Digest, Men's Fitness, Muscle & Fitness, Flex and Muscle & Fitness Hers. AMI also manages 10 different digital sites including RadarOnline.com, OKmagazine.com, MensFitness.com and MuscleandFitness.com. AMI's magazines have a combined total circulation of 2.1+ million and reach more than 37 million men and women each month. AMI's digital properties reach an average of 50 million unique visitors and over 350 million page views monthly.
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This Press Release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to our current beliefs regarding future events or our future operating or financial performance. By their nature, forward-looking statements involve risks, trends, and uncertainties that could cause actual results to differ materially from those anticipated in any forward-looking statements. Such factors include, but are not limited to, those items described in "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2015 (the "Annual Report") and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in AMI's Annual Report and Quarterly Report on Form 10-Q for the quarter ended December 31, 2015.
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SOURCE American Media, Inc.