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Crown Media Caps Deal (Finally)
Hallmark Channel Parent Completes $1.2 Billion Recapitalization WIth Top Holder Hallmark Cards
By Mike Farrell -- Multichannel News, 7/12/2010 12:01:00 AM
Hallmark Channel parent Crown Media Holdings wrapped up a $1.2 billion recapitalization with Hallmark Cards Inc., its largest debt and equity holder, that was more than a year in the works.
The deal, completed on June 29 and first announced in May 2009, saw Hallmark Cards exchange about $1.2 billion in debt owed by Crown for $315 million in new debt and $185 million in convertible preferred shares. Another 600 million in debt converted into Crown Media common shares that reverted to Hallmark Cards.
Crown gains breathing room by extending debt maturities to 2013. Hallmark Cards solidifies its control of Crown, as its equity stake in Crown rises to 90.1% from about 70%.
Despite the apparent end to the lengthy deal talks, a potential wrench could still come from recalcitrant shareholder S. Muoio & Associates. Muoio owns about 6% of Crown’s outstanding shares and sued in Delaware Chancery Court last July to block the deal. A Sept. 21 trial date is planned. S. Muoio & Associates principal and chief investment officer Salvatore Muoio declined to comment last week.
Hallmark Channel Parent Completes $1.2 Billion Recapitalization WIth Top Holder Hallmark Cards
By Mike Farrell -- Multichannel News, 7/12/2010 12:01:00 AM
Hallmark Channel parent Crown Media Holdings wrapped up a $1.2 billion recapitalization with Hallmark Cards Inc., its largest debt and equity holder, that was more than a year in the works.
The deal, completed on June 29 and first announced in May 2009, saw Hallmark Cards exchange about $1.2 billion in debt owed by Crown for $315 million in new debt and $185 million in convertible preferred shares. Another 600 million in debt converted into Crown Media common shares that reverted to Hallmark Cards.
Crown gains breathing room by extending debt maturities to 2013. Hallmark Cards solidifies its control of Crown, as its equity stake in Crown rises to 90.1% from about 70%.
Despite the apparent end to the lengthy deal talks, a potential wrench could still come from recalcitrant shareholder S. Muoio & Associates. Muoio owns about 6% of Crown’s outstanding shares and sued in Delaware Chancery Court last July to block the deal. A Sept. 21 trial date is planned. S. Muoio & Associates principal and chief investment officer Salvatore Muoio declined to comment last week.