NEW YORK (AP) - Primedia Inc., a publisher of free consumer guides, said
Wednesday it will receive $350 million in financing, which it plans to use to
repay existing debt and pay a one-time special dividend.
The financing will consist of a $100 million revolving line of credit and a
$250 million term loan, but terms of the loans have yet to be finalized.
Primedia expects to complete the financing in late July or early August.
Primedia plans to pay out a one-time dividend of about $96 million to
shareholders once the financing is completed. The dividend is still subject to
final approval from the board of directors.
Credit Suisse, Bank of New York, Lehman Brothers and Citigroup are providing
the capital.
Shares of Primedia rose 6 cents to $2.91.
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