Penton takes steps to relieve debt burden

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Cleveland, Ohio--Penton Media Inc. announced Tuesday that it is making three moves designed to provide relief from its long-term debt burden, which has been exacerbated by the b-to-b media recession. First, it entered into an agreement with an investor group led by ABRY Mezzanine Partners L.P. for the private placement of 50,000 shares of a new series of convertible preferred stock and warrants to purchase 1.6 million shares of Penton common stock for $50 million. Proceeds from this deal, Penton said, will be used to reduce the company’s long-term debt. Second, Penton has entered into an agreement reducing its revolving credit facility to a maximum availability of $40 million. Finally, Penton announced that it is planning an offering of senior secured notes to repay a portion of its senior credit facility.
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