J.P. Morgan and Bear Stearns are meeting this week to launch a refinancing and an add-on institutional piece for publishing house American Media (AMI), an Evercore Partners portfolio company. The bank debt, along with a bond deal, will back AMI's acquisition of Los Angeles-based Weider Publications for $350 million, which represents a price 12.7 times Weider's cash flow. The transaction is expected to close this quarter. A J.P. Morgan spokesman declined to comment, while a Bear Stearns banker did not return calls by press time.
The acquisition is structured to allow for a significant step-up in AMI's assets for tax purposes. AMI expects this structure to provide considerable incremental cash flow on an after-tax basis. Weider comprises seven magazines that include Men's Health, Muscle & Fitness, Shape, and Flex. Weider's publications will add to AMI's six tabloids and other magazines including The National Enquirer and The Star. Calls to an Evercore official and John Miley, executive v.p. and cfo of AMI, were not returned.