The refinancing proceeds were used to repay AMI’s bridge loan, which was obtained in June to finance the acquisition of the Bauer U.S. celebrity and teen titles.
It was also used to pay off the outstanding balance of about $320 million of its first lien and second lien debt.
"Completing this latest refinancing, in one of the most challenging market conditions in recent history, underscores the confidence the investment community has in American Media and our powerful brands," stated American Media chairman and CEO, David J. Pecker.
The refinancing consists of a new $235 million first lien term loan, and a new 10.5% second lien bonds of $225 million.
AMI is also getting a $40 million line of credit.
"The refinancing provides American Media a significant amount of runway, stability and liquidity, which will allow us to focus on maximizing our margins and continue to deliver strong free-cash flow results from both the ongoing operating improvements of our recent acquisitions, as well as from our core brands,” stated American Media CFO Chris Polimeni.
This year, AMI plans to increase production of special-interest publications, a spokesperson told the New York Post.
AMI has been embroiled in controversy since the company admitted it coordinated with President Trump’s campaign to make an illegal hush payment to Playboy model Karen McDougal for “catch and kill” rights to the story of her affair with Trump.
AMI also owns Star, OK!, In Touch, Life & Style, Closer, Muscle & Fitness as well as other celebrity and teen titles and digital and social properties.
The media company claims its magazines have a combined total circulation of 5.7 million, while its digital properties reach about 65 million unique visitors monthly.