American Media Inc. (AMI)
announced a deal with bondholders that would help the media company save
approximately $12 million per year in cash interest payments over the next
three years.
AMI entered into the
exchange agreement with holders of approximately 90 percent of its 13.5
percent second lien notes. Existing second lien notes belonging to those holders
will be exchanged for a new series of 10 percent second lien notes with a
payment-in-kind feature. AMI will use the $12 million in anticipated savings to
repurchase its first lien bonds.
AMI owns and operates various celebrity and active lifestyle print brands
including the National Enquirer, Star, Soap Opera Digest and Shape,
among others, totaling a combined circulation of more than 7.2 million.
