Central European Media Enterprises Ltd. (“CME” or the “Company”) announced today that its wholly owned subsidiary CET 21 spol. s r.o. (“CET 21”) plans to make a private placement of fixed rate senior secured notes in the aggregate principal amount of EUR 70.0 million (approximately US$ 85.8 million). The notes will have the same terms and be of the same series as the 9.0% senior notes due 2017 that CET 21 issued and sold on October 21, 2010. The notes will be senior secured obligations of CET 21 and will be guaranteed by the Company and certain of its subsidiaries. There can be no assurance that the proposed offering will be completed. The notes will be sold to investors at a purchase price equal to 108.250% of the principal amount, plus accrued interest from May 1, 2012, will pay interest semi-annually at a rate of 9.0% per year and will mature on November 1, 2017.
CET 21 intends to use the net proceeds from the offering (i) to fully repay outstanding amounts under its CZK 1.5 billion revolving credit facility agreement, which is expected to be approximately EUR 59.5 million (approximately US$ 73.0 million), and (ii) for general corporate purposes.