Primedia bolsters balance sheet

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New York--After restructuring its bond debt earlier this month, Primedia Inc. announced Friday another round of financial re-engineering designed to strengthen its balance sheet.

Primedia, publisher of New York Magazine and Telephony, said it has exchanged a total of $16.4 million redemption value of series D, F and H preferred stock for 5 million shares of its common stock. Primedia repurchased this stock for $15.1 million in cash.

The company said these transactions will yield annualized dividend savings of approximately $1.5 million.

“The reduction of dividend payments to preferred shareholders, which reduces our fixed obligations, will have a positive effect on the company's cash flow going forward and simplifies and strengthens our balance sheet,” said Charles G. McCurdy, Primedia’s interim CEO-president.

--Sean Callahan

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