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Affinity Group noteholders agree to extend interest payment deadline
By Caroline Salls
Pittsburgh, Sept. 16 - Affinity Group Holding, Inc. has received consents from some institutional and non-institutional holders of its 10 7/8% senior notes due 2012 to extend the grace period for payment of interest on the notes, according to an 8-K filed with the Securities and Exchange Commission.
Affinity said consents were received for 98.9% of the outstanding principal amount of the notes.
According to the 8-K, the company has retained a financial adviser and held discussions with the noteholders regarding a refinancing or restructuring of the debt of Affinity and its subsidiary Affinity Group, Inc.
As part of those discussions, the company did not pay the interest due Aug. 15 on the notes, but the notes indenture provides a 30-day grace period for the payment.
The consenting institutional noteholders have agreed to extend the payment date to Oct. 1. The date can be extended to Oct. 9 if the consenting noteholders agree that the company is making satisfactory progress toward a comprehensive restructuring.
The company said the consents from the non-institutional noteholders extended the payment date to Oct. 29.
Affinity has agreed to pay $150,000 in legal fees for a law firm to represent noteholders who signed the institutional consents, as well as to pay $164,600 in consent fees to those noteholders.
No fees were paid in connection with the non-institutional consents.
The company said it paid the interest on the remaining $1.26 million principal amount of notes for which no consents were received.
Affinity Group is a Ventura, Calif.-based direct marketing company.
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