American Media, Inc. Reaches New Agreement With Bondholders

NEW YORK, July 2 /PRNewswire/ -- American Media, Inc. (AMI) today announced it has reached an agreement with 90% of its bondholders for them to exchange AMI's bonds for shares of AMI common stock.  After the transaction, AMI's debt will be reduced by $200 million and its leverage reduced from 7.2x to 5.1x.

The transaction gives AMI significant flexibility, with $50 million of free cash flow on a pro forma basis.  The company plans on launching a debt-for-equity exchange in July and anticipates it will be concluded in August.  Moelis & Company served as AMI's financial advisor in the transaction.

AMI Chairman, President and CEO David J. Pecker said, "I am very grateful to our bondholders for having the confidence and faith in AMI to consummate this transaction."

Additional information about the transaction will be available on AMI's website.

About American Media, Inc.  

American Media, Inc. is the leading publisher of celebrity journalism and health and fitness magazines in the U.S.  These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer.  In addition to print properties, AMI manages 14 different web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company.

SOURCE American Media, Inc.