Debut Broadcasting amends $1.5 million 12% convertible promissory note

By Devika Patel

Knoxville, Tenn., Sept. 21 - Debut Broadcasting Corp., Inc. amended a 12% convertible promissory note on Sept. 15, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The note, which matured on July 31, 2010, was issued to River Falls Financial Services, LLC on Sept. 21, 2009 in exchange for a $1.5 million line of credit. It was convertible into 30 million common shares at $0.05 per share. At maturity, the note had a balance of $724,000, consisting of $650,000 in principal and $74,000 in interest.

On Sept. 15, the note was modified. River Falls Financial Services issued a promissory note to Diversified Support Systems, Inc. for 50% of the matured note's balance, with an interest rate of 3% per year.

In conjunction with this new note, River Falls Financial Services, Debut Broadcasting and Diversified Support Systems negotiated a participation agreement under which the parties agreed to share in the loan to Debut Broadcasting with a 50% participation.

Payments of the note's principal will begin on Oct. 15, and the note's balance will be paid off over a five-year term.

Nashville's Debut Broadcasting produces and distributes syndicated radio programs to radio stations.

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