Crown Announces $300M Debt Offering


Crown Media, parent of the Hallmark Channel, said Tuesday that it intends to commence a private placement offering of about $300 million in senior notes due 2019, mainly to retire old debt.
In addition, Crown said it intends to enter into new senior secured credit facilities which will be secured by its assets and those of its subsidiaries and will be guaranteed by its subsidiaries. The consummation of the debt offering is conditioned on Crown entering into the new credit facilities.
The offering should be completed by mid-July. In a statement Crown said the proceeds would be used to extinguish obligations under its existing term credit facilities, redeem its preferred stock and for general corporate purposes.
The deals come about a year after Crown exchanged about $1.2 billion in debt owed to its parent, Hallmark Cards, in return for more equity in the programmer. As part of that deal, Hallmark Cards increased its equity stake in Crown to 90.3% from about 80% of its outstanding stock.