Moorgate Advises Block Communications on Recapitalization


Toledo, OH -- Block Communications, Inc. ("Block" or the "Company"), a privately held diversified media company with operations in cable television, commercial telecommunications, newspaper publishing and television broadcasting, announced that it consummated its private placement offering of $250 million aggregate principal amount of its 7 1/4% senior notes due 2020 (the "New Notes") and the early settlement of its previously announced cash tender offer and consent solicitation (the "Tender Offer") with respect to its outstanding 8 1/4% senior notes due 2015 (the "Old Notes").

The Company used a portion of the net proceeds from the sale of the New Notes to fund the payment of consideration and costs relating to the Tender Offer. As of the Early Tender Deadline, $105,694,000.00 aggregate principal amount of Old Notes had been validly tendered and not withdrawn, which represented approximately 70.46% of the outstanding aggregate principal amount of the Old Notes. On the Initial Acceptance Date, the Company accepted for purchase and payment all of the Old Notes that were validly tendered at or prior to the Early Tender Deadline. Payment for the Old Notes pursuant to the Early Settlement was made on the Initial Payment Date. Holders of Old Notes who tendered their Old Notes at or prior to the Early Tender Deadline received $1,030.00 for each $1,000 principal amount of the Old Notes validly tendered, which included the consent payment of $10.00 per $1,000 principal amount of Old Notes, plus any accrued and unpaid interest up to, but not including, the Initial Payment Date.  The Company intends to redeem the Old Notes that are not tendered under the Tender Offer pursuant to its optional redemption rights under the Old Notes and related indenture.  This redemption will be funded by a portion of the net proceeds from the sale of the New Notes.

Moorgate Securities LLC advised Block on its recapitalization.  For additional information on the Company, please see the Block Communications, Inc. website.

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