FriendFinder in Deadline as Sex Doesn’t Sell: Corporate Finance
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FriendFinder Networks Inc., the owner of Penthouse magazine and a sex-dating website that has $511 million of debt, was given three months by its bondholders to turn around a business that has never reported a profit.
FriendFinder’s $280.5 million of second-lien notes due 2014 plunged 28 percent this month to 12.5 cents on the dollar, the second lowest among the 2,063 bonds in the Bank of America Merrill Lynch U.S. High Yield Master II Index. Bondholders have given the company until Nov. 14 to raise its cash balance, Chief Financial Officer Ezra Shashoua said on an Aug. 14 conference call with investors.