Reader's Digest Offers $525M in Notes
JPMorgan roadshow starts today and ends Jan. 29
January 25, 2010
Bankrupt publisher Reader’s Digest plans to issue $525 million in floating-rate notes due 2017, as it works to emerge from bankruptcy by Jan. 31. The deal will likely price on Jan. 29.
JPMorgan is the lead underwriter and is conducting a roadshow beginning today and ending on Jan. 29. A Reader's Digest representative was not immediately available for comment.
The Pleasantville, N.Y.-based publisher won bankruptcy court approval on Jan. 15 for its reorganization plan, which will cut its debt to $555 million from $2.2 billion. It filed for bankruptcy last August.
Floating-rate notes have become a rarity in the high-yield market. The last company to price floating-rate notes on the junk market was Wallace Theater Holdings, the parent company of Hollywood Theaters, which issued $157 million in Libor plus 9.5% floating-rate notes due 2013 in June 2009.
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