Crown Media Holdings Inc. said that it plan to begin private placement offering of $300 million of senior notes, which in part will be used to pay off less favorable debt. The offering is expected to close by mid-July.
The Studio City operator of the Hallmark cable and movie channels said late Monday that proceeds will be used to pay off Crown Media’s existing term credit facilities, redeem preferred stock and for general corporate purposes.
The notes, due 2019, will be senior unsecured obligations guaranteed by each of Crown Media's subsidiaries and will bear a fixed interest rate.
Shares were down 2 cents, or 1 percent, to $1.71 in midday trading on the Nasdaq.
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