ZIFF DAVIS COMES TO TERMS WITH BANKERS

Debt to Be Restructured By End of Summer

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NEW YORK (AdAge.com) -- Ziff Davis Media announced it has reached agreement with its bankers to amend its credit facilities, and said it expects to complete a reorganization of its debt by the end of the summer.

The publishing company, parent of PC Magazine and Yahoo! Internet Life, said 90% of holders of its outstanding loans have agreed to the amendment, which includes a restructuring of $250 million in senior subordinated notes and a $80 million cash infusion from its owner, investment bank Willis Stein & Partners.

The restructuring

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deal would give note holders a combination of cash and new subordinated notes worth about 62 cents on the dollar.

Ziff Davis had fallen in default of its credit agreements Dec. 31, but banks granted it until June 28 to negotiate the amendment. Without the extension, the banks could have forced Ziff Davis to repay its credit, which would have left no cash for debt payments on the senior notes and placed those notes in default.

In a filing with the Securities and Exchange Commission last month, the company had raised the possibility of bankruptcy if it would not able to complete the credit amendment and debt restructuring.

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