HAMILTON, Bermuda, Feb. 11, 2011 (GLOBE NEWSWIRE) -- Central European Media Enterprises Ltd. ("CME") (Nasdaq:CETV) (Prague Stock Exchange:CETV) today announced its agreement to repurchase, in privately negotiated transactions, approximately $206 million aggregate principal amount of its 3.50% senior convertible notes due 2013 (the "2013 notes"). In exchange for their 2013 notes, holders will receive approximately $206 million aggregate principal amount of 5.0% senior convertible notes due 2015 (the "new notes"). Accrued interest on the 2013 notes, cash consideration to holders and fees and expenses incurred by the Company in connection with this exchange will be approximately $30 million. The exchange is being conducted pursuant to Section 3(a)(9) of the U.S. Securities Act of 1933, as amended (the "Securities Act"). Consummation of these transactions is subject to the effectiveness of CME's application with the U.S. Securities and Exchange Commission for the qualification of the indenture governing the new notes.
The new notes will pay interest semi-annually at a rate of 5.0% per year, payable on May 15 and November 15 of each year, beginning May 15, 2011, and will mature on November 15, 2015. Prior to August 15, 2015, the new notes will be convertible upon specified events and, thereafter, at any time, based on an initial conversion rate of 20 shares of CME's Class A common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of $50.00 per share of CME's Class A common stock). Upon conversion, CME will have the right to deliver (i) shares of CME's Class A common stock, (ii) cash or (iii) a combination of cash and shares of CME's Class A common stock.
The notes will be senior obligations of CME and will rank equally in right of payment with its existing and future senior debt. The notes will be jointly and severally guaranteed on a senior basis by two of CME's wholly-owned subsidiaries. The notes will be secured by a security interest in the shares of the two subsidiary guarantors.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV