ION Gets Results in Exchange Offer

ION Media Networks received over 90% participation in exchange offers for two series of outstanding preferred stock that expired on Friday.

The company has accepted 90.6% of the outstanding shares of 14.25% cumulative junior exchangeable preferred stock and 95.6% of the outstanding shares of the 9.75% series A convertible preferred stock.

As part of the exchange, the company will issue $458.8 million aggregate principal amount of 11% series A mandatorily convertible senior subordinated notes due 2013 and $33.8 million of 12% series B mandatorily convertible preferred stock to holders who tendered the outstanding preferred in the offer.

The company also announced that a majority of holders of the total voting power of its outstanding voting stock approved the proposed amendments to the terms of each series of senior preferred stock.

The exchange offer is part of a recapitalization plan launched to take ION private by Citadel Investment Group.