Muzak Completes Financial Restructuring and Emerges From Chapter 11

FORT MILL, S.C., Feb. 1 /PRNewswire/ -- Muzak Holdings LLC and certain of its subsidiaries (together, the "Company") today announced that the Company has successfully completed its financial restructuring and has emerged from protection under Chapter 11 of the United States Bankruptcy Code.  Through the restructuring process Muzak significantly improved its balance sheet, reducing the Company's outstanding debt by more than half.

As previously announced, Muzak's chapter 11 plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on January 12, 2010.  The Court also approved Muzak's previously announced $108.75 million Senior Secured Exit Financing Facility commitment from GE Capital Restructuring Finance, Silver Point Finance, LLC ("Silver Point") and MFC Global Investment Management.  The commitment will be used to satisfy the claims of the Company's prepetition senior secured lenders, to fund working capital and for other general corporate purposes.  In addition, under the terms of the Company's plan of reorganization, Silver Point Capital has become the majority equity owner of Muzak.

"Today marks the successful completion of our financial restructuring and a new beginning for our 75 year old company," said Stephen P. Villa, Chief Executive Officer of Muzak.  "When we began this process less than one year ago, we set out to develop a plan that would garner the full support of our creditors, while allowing the Company to continue normal operations.  We are proud to have accomplished that goal and to have maintained our strong commitment to our clients.  I would like to thank our employees and independent affiliates, whose hard work and loyalty have been instrumental in all that we have achieved and will continue to be an important factor in our future.  We are excited to move forward as a financially stronger company and are confident that we are now well-positioned for continued leadership and innovation, which will ensure the long-term success of the Company."

Mr. Villa continued, "To best serve our clients going forward, we have realigned Muzak's organizational structure.  It is with great pleasure that we formally announce the launch of Muzak's three new business divisions.  Our commitment to clients has never been stronger, and we are confident that this new structure will allow us to further improve client service and enhance the client experience."

Media

The new division will centralize existing Muzak products including Music, Voice and Video, to streamline internal processes and expand and accelerate its services and capabilities. The Media group will leverage its strategic content acquisition efforts and continue to expand its global licensing, rights and clearance management department, programming operations and media syndication platform. The Media group is led by Christopher Williams, Executive Vice President.

Touch

Touch is a solutions-driven design service that specializes in the intricacies of sensory branding. Touch was established to serve those prospects and clients seeking to maximize the value of every customer touchpoint. Touch will focus on a purpose-built, strategy-led and ROI-driven approach to in-store experience through dynamic use of music, digital signage, messaging, music licensing, social media and integrated technology. Touch is led by Robert Finigan, Vice President and General Manager.

Systems

Systems combines Muzak's Pro Sound, Technical Operations, QSR and Strategic Equipment Development departments into one division. With an industry-leading network of highly trained technicians spanning approximately 200 service locations, the Systems group creates the ultimate value proposition. By leveraging its full lifecycle integration of technical systems and audio and visual solutions, clients can create the ultimate media experience from inception and design through installation and ongoing service. The Systems group is led by Tom Gantert, Executive Vice President and Chief Operating Officer.

Mr. Villa concluded, "As we move into the future, our strengthened capital structure provides us with the renewed ability to invest in new talent and technology that will allow us to provide new offerings and further enhance the first class products and services that our clients have come to expect from Muzak."  

Kirkland & Ellis LLP served as legal advisor and Moelis & Company served as financial advisor to the Company during the restructuring process.

About Muzak

For more than 75 years, Muzak has continued to lead the media solutions industry. By acquiring, designing and delivering rich media-based solutions to clients worldwide, our services reach over 100 million people every day. Through 200 sales and service offices, Muzak designs and installs Digital Signage networks, leading drive-thru equipment and professional sound systems to a variety of clients in the retail, hospitality and restaurant industries. For more information, visit www.muzak.com.

Forward Looking Statements –

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to the safe harbor provisions created by that Act. In addition, forward-looking statements may be made orally in the future by or on behalf of the Company. Forward-looking statements can be identified by the use of terms such as "expects", "should", "may", "believes", "anticipates", "will", and other future tense and forward-looking terminology. There can be no assurance as to the actual results of the undertakings described herein. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Readers are cautioned that actual results may differ materially from those projected as a result of certain risks and uncertainties including those contained in the risk factor and safe harbor disclosures found in our most recent financial reports and releases available at http://info.muzak.com/investor/. These forward-looking statements are made only as of the date of this report, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Muzak Holdings LLC