This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Emmis Announces Agreements To Purchase Certain Preferred Shares

Stocks in this article: EMMS

INDIANAPOLIS, Nov. 11, 2011 /PRNewswire/ -- Emmis Communications Corporation (NASDAQ: EMMS; EMMSP) today announced that it signed agreements with certain holders of its 6.25% Series A Cumulative Convertible Preferred Stock to purchase their shares of Preferred Stock and that it signed an agreement with Zell Credit Opportunities Master Fund, L.P. to finance the purchases.  Emmis may enter into additional transactions to purchase its Preferred Stock in the future.

Emmis entered into securities purchase agreements with certain holders of its Preferred Stock under which Emmis will purchase shares of its Preferred Stock from such holders at prices that are below the closing price of the Preferred Stock on November 10, 2011.   The purchases will settle pursuant to total return swaps, the terms of which provide that until final settlement of the swaps, the seller agrees to vote its shares in accordance with the prior written instructions of Emmis.  

Under the terms of a Note Purchase Agreement, Zell Credit Opportunities Master Fund, L.P. has agreed to buy from Emmis on up to four separate occasions on or before February 2, 2012, a total of up to $35,000,000 of unsecured notes.  The net proceeds from the notes are expected to be used to enable Emmis to ultimately acquire some of its Preferred Stock through privately negotiated transactions with individual Preferred Stock holders and/or through a tender offer.  Interest on the notes is not payable in cash and will accrue quarterly at a rate of 22.95 percent per annum.  The notes will mature in February of 2015, and contain customary representations, warranties, and indemnities, as well as covenants that are comparable to those in Emmis' senior secured credit facility, including the prohibition of any dividend payments on Emmis' capital stock and certain restrictions on the ability of Emmis to incur additional indebtedness.  

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Taft Stettinius & Hollister LLP served as legal counsel and Moelis & Company served as financial advisor to Emmis. 

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs