13D Filing: Elliott Associates, L.P. and Affinion Group Holdings Inc. (AFGR)

Neither the Warrants, nor the Common Stock issuable upon the exercise thereof, are registered securities, and therefore are subject to restrictions on transfers under securities laws.

Holders of Warrants will be entitled to participate in dividends on an as-exercised basis. Holders will not be entitled to any other rights of holders of Common Stock until, and to the extent, they have validly exercised their Warrants.

The Warrant Agreement is attached as an exhibit to the initial Schedule 13D and is incorporated herein by reference.  The foregoing summary of the Warrant Agreement is qualified in its entirety by reference to such exhibit.

Pursuant to the Investor Purchase Agreement and the Indenture, dated as of May 10, 2017, the Reporting Persons hold $317,180,804 of the Issuer’s Senior Cash 12.5%/PIK Step-Up to 15.5% Notes due 2022 (the “Notes”).  The Notes are unsecured senior obligations of the Issuer. The New Notes are guaranteed by each of Affinion Group Holdings, Inc. (“Affinion Group”) and Affinion Group’s restricted subsidiaries that guarantee the Notes. The New Notes will mature on November 10, 2022.   Interest on the Notes is payable semi-annually in arrears on May 10 and November 10 of each year, commencing on November 10, 2017, and will accrue from May 10, 2017. For additional information regarding the Notes, reference is made to the Form 8-K filed by the Issuer on May 12, 2017.

On March 31, 2017 Elliott and Elliott International entered into an Amended and Restated Registration Rights Agreement (the “Registration Rights Agreement”) in which the Issuer agreed to register certain equity securities under the Securities Act of 1933. The Registration Rights Agreement is attached as an Exhibit to Amendment 1 of this Schedule 13D and is incorporated herein by reference.

On March 31, 2017, the Reporting Persons entered into a Support Agreement (the “Support Agreement”) with the Issuer and certain other holders of the Issuer’s 7.875% Senior Notes due 2018.  Pursuant to the Support Agreement, the Reporting Persons agreed, among other things, to support certain transactions initiated by the issuer. The Support Agreement is attached as an Exhibit to Amendment 1 to this Schedule 13D and is incorporated herein by reference.

On May 22, 2017 Elliott, Elliott International and EICA entered into a Joint Filing Agreement (the “Joint Filing Agreement”) in which the parties agreed to the joint filing on behalf of each of them of statements on Schedule 13D with respect to the securities of the Issuer to the extent required by applicable law. The Joint Filing Agreement is attached as an exhibit to the initial Schedule 13D and is incorporated herein by reference.

Except as described above in this Item 6, none of the Reporting Persons has any contracts, arrangements, understandings or relationships with respect to the securities of the Issuer.