American Media, Inc. reaches new agreement with bondholders
New York, NY, July 2, 2010 -- American Media, Inc. (AMI) today announced it has reached an agreement with 90% of its bondholders for them to exchange AMI's bonds for shares of AMI common stock. After the transaction, AMI's debt will be reduced by $200 million and its leverage reduced from 7.2x to 5.1x.
The transaction gives AMI significant flexibility, with $50 million of free cash flow on a pro forma basis. The company plans on launching a debt-for-equity exchange in July and anticipates it will be concluded in August. Moelis & Company served as AMI's financial advisor in the transaction.
AMI Chairman, President and CEO David J. Pecker said, "I am very grateful to our bondholders for having the confidence and faith in AMI to consummate this transaction."
Additional information about the transaction will be available on AMI's website.
About American Media, Inc.
American Media, Inc. owns and operates the leading print and digital celebrity and health and fitness media brands in the United States. AMI’s titles include Star, OK!, National Enquirer, Globe, Soap Opera Digest, Soap Opera Weekly, Pixie, Shape, Men’s Fitness, Muscle & Fitness, Flex, Muscle & Fitness Hers, Fit Pregnancy and Natural Health. AMI also manages 18 different digital sites including RadarOnline.com, OKmagazine.com, Shape.com, MensFitness.com, MuscleandFitness.com and FitPregnancy.com. AMI’s magazines have a combined total circulation of almost 7 million and reach more than 55 million men and women each month. AMI’s digital properties reach an average of 10 million unique visitors and 80 million page views monthly.
AMI also operates a Publishing Services business unit which includes Distribution Services, Inc. (DSI), the No. 1 in-store magazine sales and merchandising marketing company in the U.S. and Canada. DSI places and monitors AMI’s publications and third-party publications to ensure proper displays in major retail chains and national and regional supermarket chains. DSI also provides marketing, merchandising and information gathering services to third parties including non-magazine clients. Publishing Services also provides print and digital advertising sales and strategic management direction in the following areas: manufacturing, subscription circulation, logistics, event marketing and full back office financial functions. Playboy is one of many publishers who have taken advantage of these additional services.
SOURCE American Media, Inc.