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Affinity Group extends payment to bond holders

VENTURA, Calif. — As of Oct. 23, the bond holders who signed institutional consent letters have agreed to extend the interest payment date on their Affinity Group Holding Inc. notes to Oct. 30, according to a statement filed with the Securities Exchange Commission.

This is the second extenstion announced by Affinity Group in two weeks. On Oct. 16, the bond holders agreed to extend their interest payment to Oct. 23.

On Sept. 14, Affinity Group Holding, Inc. received consent letters from certain institutional holders of its 10 7/8 percent senior notes due 2012 holding in the aggregate $65,835,969 principal amount of the AGHI Notes outstanding. The company also received consent letters from certain non-institutional holders (the “other consents”) of the AGHI Notes holding in the aggregate $46,555,946 principal amount of the AGHI notes outstanding. The aggregate principal amount of the AGHI Notes outstanding is $113,648,603 so the holders executing the consents held 98.9 percent of the outstanding principal amount of the AGHI Notes.

 

The company has engaged in discussions with the holders of the AGHI Notes regarding a refinancing or restructuring of the indebtedness of the company and its subsidiary, Affinity Group, Inc. As part of those discussions, the company did not pay the interest on the AGHI Notes that was due on Aug. 15, but the indenture governing the AGHI Notes provides a 30-day grace period for the payment of interest that was to have been paid on that date.

Pursuant to the consent agreements, the company has agreed to pay the legal fees for a law firm to represent the holders who signed the institutional consents in connection with such discussions and has paid a $150,000 retainer to that law firm. In addition, the company has paid a consent fee equal to 0.25 percent of the principal amount to the holders who signed the agreements — an aggregate of $164,600.

The concent agrements extended the most recent interest payment date on their AGHI Notes until Oct. 1. The other consents extended the most recent interest payment date on their AGHI Notes until Oct. 29 and no consent fees were paid to those holders.

 

On Sept. 14, 2009, the company paid the interest on the remaining $1,256,688 principal amount of AGHI notes that are outstanding and for which an institutional consent or an other consent was not obtained.
 

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About Greg Gerber

Greg Gerber is a freelance writer and podcaster who has been writing about the RV industry since 2000. He is the former editor of RV Daily Report.

2 comments

  1. Bond holders should cut their losses and run now.
    It does not look like it is going to get better!

  2. Camping World/Freedom Roads Hater

    Tick Tock. Tick Tock. Wonder when the Freedom Roads side of all of this will go Bankrupt? Anybody thought about that? Looking forward to the out of business sale? I am.

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