Crown Media Holdings Announces Closing of Senior Notes Offering and New Credit Facility
STUDIO CITY, Calif.--(BUSINESS WIRE)--
Crown Media Holdings, Inc. (NASDAQ: CRWN), announced today the closing
of its previously announced offering in a private placement (the
"Offering") of $300 million in aggregate principal amount of 10.5%
senior notes due 2019 (the "Notes"). Crown Media also entered into new
$240 million senior secured credit facilities consisting of (i) a seven
year $210 million senior secured term loan facility and (ii) a five year
$30 million senior secured super-priority revolving credit facility.
The proceeds of the term loans and a portion of the proceeds of the
Notes were used to repay borrowings under Crown Media's existing credit
agreement with its affiliate, H C Crown, LLC ("HCC"), a subsidiary of
Hallmark Cards, Inc., and the remaining proceeds of the Notes were used
to redeem all of Crown Media's outstanding Series A Preferred Stock, all
of which was held by HCC. The revolving credit facility will be used in
the future for general corporate purposes. The existing credit agreement
with HCC was comprised of a Term A Loan that bore interest at 9.5% per
annum through December 31, 2011, and 12% thereafter, and a Term B Loan
that bore interest at 11.5% through December 31, 2011, and at 14%
thereafter. The dividend rate for the Series A Preferred Stock was 14%
and would have increased to 16% beginning on January 1, 2012.
The Notes were offered only to qualified institutional buyers under Rule
144A of the Securities Act of 1933, as amended (the "Securities Act")
and to buyers outside the United States pursuant to Regulation S under
the Securities Act. The Notes have not been registered under the
Securities Act, and until so registered, the Notes may not be offered or
sold in the United States except pursuant to an exemption from the
registration requirements of the Securities Act and applicable state
securities laws.
About Crown Media Holdings
Crown Media Holdings, Inc. (NASDAQ:CRWN) is the corporate parent for the
portfolio of cable networks and related businesses under Crown Media
Family Networks. The Company currently operates and distributes Hallmark
Channel in both high definition (HD) and standard definition (SD) to 88
million subscribers in the U.S. Hallmark Channel is the nation's leading
network in providing quality family programming with an ambitious slate
of original TV movies and general entertainment, and is the home of The
Martha Stewart Show and other home and lifestyle content. Hallmark
Channel's sibling network is Hallmark Movie Channel, also available in
HD and SD, distributed to more than 42 million homes and one of
America's fastest-growing cable networks. Hallmark Movie Channel
provides family-friendly movies with a mix of classic theatrical films,
presentations from the acclaimed Hallmark Hall of Fame library, original
Hallmark Channel movies and special events. In addition, Crown Media
Family Networks also includes the online offerings of
HallmarkChannel.com and HallmarkMovieChannel.com.
Forward-looking Statements
Statements contained in this press release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's current
expectations, estimates and projections. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "estimates," variation of
such words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements are
subject to risks and uncertainties, which could cause actual results to
differ materially from those projected or implied in the forward-looking
statements. Such risks and uncertainties include: competition for
distribution of channels, viewers, advertisers, and the acquisition of
programming; fluctuations in the availability of programming;
fluctuations in demand for the programming Crown Media airs on its
channels; and other risks detailed in the Company's filings with the
Securities and Exchange Commission, including the Risk Factors stated in
the Company's most recent 10-K and 10-Q Reports. Crown Media
Holdings is not undertaking any obligation to release publicly any
updates to any forward looking statements to reflect events or
circumstances after the date of this release or to reflect the
occurrence of unanticipated events.
IR Focus
Mindy Tucker, 914-725-8128
mindy@irfocusllc.com
or
Crown
Media
Annie Howell, 212-445-6690
anniehowell@hallmarkchannel.com
Source: Crown Media Holdings, Inc.
News Provided by Acquire Media
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