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Dex One Corporation (NYSE: DEXO), a leading marketing services company, announced today it successfully repurchased bank debt at each of its three operating subsidiaries and will retire approximately $142 million in principal amount of bank debt for approximately $70 million in cash consideration.
Two of the three offers were over-subscribed, allowing the company to use the full amount of cash designated for debt repurchases at those two subsidiaries and more than two-thirds of the cash designated for debt repurchases at the third.
“We will continue to take steps to strengthen our balance sheet,” said Dex One CEO Alfred Mockett. “Given the significant level of interest in our tender offers, we are able to reduce a meaningful amount of our outstanding debt obligations. As a result of our debt restructuring initiatives and other obligatory payments, we are targeting the retirement of at least $500 million of total debt in 2012.”
The results of the bank debt repurchases are as follows:
Principal Value ofAccepted Bids
Aggregate CashPayment to Lenders
Dex Media East, Inc.
Dex Media West, Inc.
R.H. Donnelly Inc.
As announced on March 14, 2012, designated utilization and price ranges for the bank debt repurchases were as follows:
Dex Media East, Inc. - offered to utilize up to $12.5 million to repurchase its bank debt at a price of 50.5% to 54.5% of par.
Dex Media West, Inc. - offered to utilize up to $23.5 million to repurchase its bank debt at a price of 60.0% to 64.0% of par.
R.H. Donnelley Inc. - offered to utilize up to $40 million to repurchase its bank debt at a price of 41.5% to 45.5% of par.
The offers expired at 5:00 p.m., New York City time, on Wednesday, March 21, 2012. Settlement of the prepayments is expected on or about Friday, March 23, 2012.