RDA Wins Final Approval of $105 Million DIP Financing Agreement
NEW YORK, March 25, 2013 /PRNewswire/ -- RDA Holding Co., parent company of The Reader's Digest Association, Inc., announced that it has obtained final Court approval of its $105 million debtor-in-possession financing agreement.
The financing, which will be used in conjunction with cash generated from operations to support the Company throughout the Chapter 11 process, is being provided by a group of the Company's secured creditors.
In addition to the financing agreement, U.S. Bankruptcy Judge Robert Drain granted final approval to a variety of motions to support RDA's operations during the Chapter 11 process, including authority to pay employees and freelancers on normal schedules, and approved the retention of various professional advisors to help shepherd the Company efficiently through the process.
The Company also filed its Plan of Reorganization and Disclosure Statement on Thursday, March 21. A hearing to consider approval of the Disclosure Statement is scheduled for April 25.
As previously reported, the Company has executed a Restructuring Support Agreement with its secured lender and its secured noteholders. The Agreement will result in, among other things, the Company converting approximately $465 million of secured notes to equity, which will strengthen the Company by significantly deleveraging its balance sheet.
During this process, the Company has continued to make strides in its strategy to focus more resources on its core products and to design more compelling advertising campaigns. The Company recently announced that its North America media brands showed stronger engagement metrics from readers across all print and digital platforms throughout CY2012 and the first quarter of 2013.
For more information regarding this announcement, please visit the Restructuring link of www.rda.com.
About The Reader's Digest Association, Inc.
Reader's Digest Association (RDA) is a global media and direct marketing company that educates, entertains and connects consumers around the world with products and services from trusted brands. For more than 90 years, flagship brand Reader's Digest, the world's largest circulation magazine, has simplified and enriched consumers' lives by discovering and expertly selecting the most interesting ideas, stories, experiences and products in health, home, family, food, finance and humor. Taste of Home is the world's largest circulation food publication and is the leading multi-platform producer of information on food, cooking and entertaining. Other brands include The Family Handyman, Birds & Blooms, Country, and many other enthusiast titles in the U.S. and internationally. The company provides content in print; online; via digital download on iPad, mobile apps, Kindle, KindleFire, Nook, Sony Reader and Zinio; books and home entertainment products; Facebook, Twitter and other social media outlets. Further information about the company can be found at www.rda.com.
This press release contains, and oral statements made from time to time by our representatives may contain, forward-looking statements that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. The words "expect," "anticipate," "estimate," "forecast," "initiative," "objective," "plan," "goal," "project," "outlook," "priorities," "target," "intend," "evaluate," "pursue," "commence," "seek," "may," "would," "could," "should," "believe," "potential," "continue," or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in this press release, other than statements of historical fact, including, without limitation, statements about our operations, financial condition and liquidity, strategies, business initiatives, prospects, expectations regarding future events and our financial performance and the development of the industry in which we operate, are forward-looking statements that involve certain risks and uncertainties. While these statements represent the Company's current judgment on what the future may hold, and the Company believes these judgments are based upon reasonable assumptions, these statements are not guarantees of any events or financial results, and the company's actual results may differ materially. Important factors that could cause our actual results to be materially different from our expectations include those risks described in our annual report found on Form 10-K which was filed with the Securities and Exchange Commission on March 29, 2012.
You should not place undue reliance on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
SOURCE The Reader’s Digest Association, Inc.
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