Block Communications accepts early tenders for 70.46% of 8¼% notes

By Jennifer Chiou

New York, Jan. 30 - Block Communications Inc. announced the receipt of early tenders for $105,694,000, or 70.46%, of its $150 million of 8¼% senior notes due 2015.

The tenders were received as of 5 p.m. ET on Jan. 26.

The company obtained the needed consents to proposed amendments to the indenture that would eliminate most of the restrictive covenants and certain events of default and modify certain other provisions.

Block also said that it has settled its private placement offering of $250 million of 7¼% senior notes due 2020. It used a portion of the proceeds to settle the early tenders.

For each $1,000 principal amount, the company paid $1,030, including an early tender premium/consent payment of $10.00 for those who tender prior to 5 p.m. ET on Jan. 26. Block will also pay accrued interest to the payment date.

Block added that it plans to redeem any untendered notes following the offer.

The offer will end at 11:59 p.m. ET on Feb. 9. It launched on Jan. 12.

Bank of America Merrill Lynch is the dealer manager (888 292-0070 or call collect 646 855-3401). The information agent is Global Bondholder Services Corp. (866 470-3900 or 212 430-3774 for banks and brokers).

Block Communications is a Toledo, Ohio-based media company with operations in cable television, telecommunications, newspaper publishing and television broadcasting.

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