UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
Tender Offer Statement under Section 14(d)(1) or 13(e)(1)
of the Securities Exchange Act of 1934
(Amendment No. 3)
NEW FRONTIER MEDIA, INC.
(Name of Subject Company (Issuer))
FLYNT BROADCAST, INC.
(Offeror)
LFP BROADCASTING, LLC
(Parent of Offeror)
L.F.P., INC.
(Other Person)
LARRY FLYNT
(Other Person)
(Names of Filing Persons (identifying status as offeror, issuer or other person))
COMMON STOCK, $0.0001 PAR VALUE
(Title of Class of Securities)
644398109
(CUSIP Number of Class of Securities)
Michael H. Klein
President
LFP Broadcasting, LLC
8484 Wilshire Blvd.
Suite 900
Beverly Hills, California 90211
(323) 651-5400
(Name, address, and telephone numbers of person authorized to receive notices and communications on behalf of filing persons)
Copies to:
Charles F. Hertlein, Jr.
Dinsmore & Shohl LLP
255 East Fifth Street
Suite 1900
Cincinnati, Ohio 45202
(513) 977-8200
CALCULATION OF FILING FEE
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Transaction Valuation (1) |
| Amount of Filing Fee (2) | |||||
$32,857,307 |
| $4,481.74 | |||||
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(1) | Estimated solely for purposes of calculating the filing fee. The transaction value was determined by adding the sum of (i) 16,264,213 outstanding shares of common stock, par value $0.0001 per share, of New Frontier Media, Inc. (“New Frontier”) multiplied by the offer price of $2.02 per share and (ii) 10,725 shares of New Frontier common stock issuable pursuant to outstanding in-the-money options multiplied by the difference of (x) the offer price of $2.02 per share minus (y) the weighted average exercise price for such options of $1.6846 per share. |
(2) | The filing fee was calculated in accordance with Rule 0-11 under the Securities Exchange Act of 1934, as amended, and Fee Rate Advisory #1 for Fiscal Year 2013, issued August 31, 2012, by multiplying the transaction value by 0.0001364. |
x | Check the box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
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Amount Previously Paid: $4,481.74 |
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| Filing Party: LFP Broadcasting, LLC | |||||||||||||
Form of Registration No.: Schedule TO |
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| Date Filed: October 29, 2012 |
¨ | Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
Check the appropriate boxes below to designate any transactions to which the statement relates:
| x | Third-party tender offer subject to Rule 14d-1. |
| ¨ | Issuer tender offer subject to Rule 13e-4. |
| ¨ | Going-private transaction subject to Rule 13e-3. |
| ¨ | Amendment to Schedule 13D under Rule 13d-2. |
Check the following box if the filing is a final amendment reporting the results of the tender offer. x
If applicable, check the appropriate box(es) below to designate the appropriate rule provision(s) relied upon:
| ¨ | Rule 13e-4(i) (Cross-Border Issuer Tender Offer) |
| ¨ | Rule 14d-1(d) (Cross-Border Third-Party Tender Offer) |
This Amendment No. 3 (this “Amendment”) amends and supplements the Tender Offer Statement on Schedule TO (together with any previous or subsequent amendments or supplements hereto, this “Schedule TO”) filed with the Securities and Exchange Commission on October 29, 2012, and is (i) filed by Flynt Broadcast, Inc., a Colorado corporation (“Merger Sub”) and a wholly-owned subsidiary of LFP Broadcasting, LLC, a Delaware limited liability company (“LFP Broadcasting”), an affiliate of L.F.P., Inc., a California corporation that is controlled by Larry Flynt, pursuant to Rule 14d-1 under the Securities Exchange Act of 1934, as amended, to purchase all of the issued and outstanding shares of common stock, par value $0.0001 (the “Shares”), of New Frontier Media, Inc., a Colorado corporation (“New Frontier”), at a price of $2.02 per Share, net to the seller in cash (less any required withholding taxes and without interest) (the “Offer Price”), plus one contingent payment right per Share which represents the contingent right to receive an additional cash payment based upon the amount of New Frontier’s available cash at the time this Offer expires (up to a maximum amount of $.06 per Share) (a “CPR”), upon the terms and subject to the conditions set forth in the Offer to Purchase, dated October 29, 2012 (together with any amendments or supplements thereto, the “Offer to Purchase”), and in the related Letter of Transmittal (together with any amendments or supplements thereto, the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”), which are annexed to and filed with the Schedule TO as Exhibits (a)(1)(A) and (a)(1)(B), respectively.
Capitalized terms used and not otherwise defined in this Amendment shall have the meanings ascribed to such terms in the Offer to Purchase. Except as otherwise noted below, no changes have been made to the responses to the Schedule TO.
ITEMS 1-9 and ITEM 11.
The Offer to Purchase, and Items 1 through 9 and Item 11 of the Schedule TO, to the extent such Items incorporate by reference the information contained in the Offer to Purchase, are hereby amended and supplemented by adding the following text to Item 11:
“At 12:00 midnight, New York City time, on November 27 (end of the day), the Offer expired as scheduled and was not extended. LFP Broadcasting was advised by the Depositary that, as of the expiration of the Offer, a total of 14,363,687 Shares were validly tendered and not withdrawn in the tender offer (including 1,570,298 shares delivered through Notices of Guaranteed Delivery), representing in the aggregate approximately 83.1% of the currently outstanding Shares (on a fully-diluted basis, including shares issuable under any outstanding warrants or options that were exercisable as of such date).
The number of Shares tendered pursuant to the Offer satisfies the Minimum Tender Condition. Merger Sub has accepted payment for all Shares that were validly tendered and not withdrawn pursuant to the Offer and will promptly make payment to the Depositary for such Shares.
Merger Sub currently intends to exercise its Top-Up Option, pursuant to which New Frontier will issue Shares to Merger Sub, at a price per Share equal to the Offer Consideration, in an amount sufficient to ensure that Merger Sub and LFP Broadcasting could effect a short-form merger under applicable Colorado law.
As a result of the purchase of Shares in the Offer and the issuance of Shares pursuant to the Top-Up Option, Merger Sub will have sufficient voting power to approve the Merger without the affirmative vote of any other shareholder of New Frontier. Accordingly, Merger Sub expects that it will effect a short-form merger in which Merger Sub is merged with and into New Frontier, with New Frontier surviving the Merger and continuing as a wholly-owned subsidiary of LFP Broadcasting. In the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger, other than (i) Shares owned directly or indirectly by LFP Broadcasting, Merger Sub, or New Frontier, or (ii) Shares held by New Frontier shareholders who properly demand appraisal rights for their Shares under Colorado law, will automatically be converted into the right to receive the Offer Consideration in cash, without interest. All Shares converted into the right to receive the Offer Consideration shall be canceled and cease to exist.
On November 28, 2012, New Frontier and LFP Broadcasting issued a press release announcing the expiration and results of the Offer. The full text of the press release is attached as Exhibit (a)(1)(G) to the Schedule TO and is incorporated herein by reference”
ITEM 12. EXHIBITS
Item 12 of the Schedule TO is hereby amended and supplemented by adding the following exhibit:
(a)(1)(G) Joint Press Release of New Frontier and LFP Broadcasting dated November 28, 2012.
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Dated: November 28, 2012
LFP BROADCASTING, LLC
By: /s/Michael H. Klein
Name: Michael H. Klein
Title: President
FLYNT BROADCAST, INC.
By: /s/Michael H. Klein
Name: Michael H. Klein
Title: President
L.F.P., INC.
By: /s/Michael H. Klein
Name: Michael H. Klein
Title: President
/s/Larry Flynt
Larry Flynt
EXHIBIT INDEX
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(a)(1)(A) |
| Offer to Purchase, dated October 29, 2012.* | |||
(a)(1)(B) |
| Form of Letter of Transmittal.* | |||
(a)(1)(C) |
| Form of Notice of Guaranteed Delivery.* | |||
(a)(1)(D) |
| Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* | |||
(a)(1)(E) |
| Form of Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.* | |||
(a)(1)(F) |
| Summary Advertisement, published October 29, 2012 in Investor’s Business Daily.* | |||
(a)(1)(G) | Joint Press Release of New Frontier and LFP Broadcasting dated November 28, 2012. | ||||
(a)(5)(A) |
| Press Release, dated October 15, 2012, issued by New Frontier (incorporated by reference to Exhibit 99.1 to the Schedule TO filed by LFP Broadcasting with the Securities and Exchange Commission on October 15, 2012).* | |||
(a)(5)(B) |
| Joint Press Release of the Company and LFP Broadcasting, dated October 29, 2012, announcing the commencement of the Offer.* | |||
(d)(1) |
| Agreement and Plan of Merger, dated as of October 15, 2012, by and among LFP Broadcasting, Merger Sub and New Frontier (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by New Frontier with the Securities and Exchange Commission on October 16, 2012).* | |||
(d)(2) | Deposit Escrow Agreement dated as of October 15, 2012, by and among LFP Broadcasting, Merger Sub and New Frontier.* | ||||
(d)(3) | Guarantee, dated as of October 15, 2012, by and among New Frontier and L.F.P., Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by New Frontier with the Securities and Exchange Commission on October 16, 2012).* | ||||
(d)(4) | Confidentiality Agreement, dated May 9, 2012, by and between New Frontier and Flynt Management Group, LLC.* | ||||
(d)(5) | First Amendment to Agreement and Plan of Merger, dated as of November 19, 2012, by and among LFP Broadcasting, Merger Sub and New Frontier.* | ||||
*Previously filed |
LFP BROADCASTING COMPLETES TENDER OFFER FOR
ALL OUTSTANDING SHARES OF NEW FRONTIER MEDIA, INC.
BOULDER, COLORADO and LOS ANGELES, CA – November 28, 2012 – New Frontier Media, Inc. (NasdaqGS: NOOF) (“New Frontier”), a leading provider of transactional television services and distributor of general motion picture entertainment, and L.F.P., Inc., the company founded and headed up by Larry Flynt, today jointly announced that LFP Broadcasting, LLC (“LFP Broadcasting”) and Flynt Broadcast, Inc. (“Flynt Broadcast”), affiliates of L.F.P., have successfully completed the tender offer for all of the outstanding shares of common stock of New Frontier Media for $2.02 per share, net to the seller in cash without interest, plus a contingent cash payment right in the amount of $0.04 per share for each common share.
The tender offer expired at 12:00 midnight, New York City time, on November 27, 2012 (the end of the day). Corporate Stock Transfer, Inc., the depositary for the tender offer, has advised LFP Broadcasting that as of such time approximately 14,363,687 shares were validly tendered and not withdrawn in the tender offer (including 1,570,298 shares delivered through Notices of Guaranteed Delivery), representing in the aggregate approximately 83.1% of New Frontier’s currently outstanding shares (on a fully-diluted basis, including shares issuable under any outstanding warrants or options that were exercisable as of such date). LFP Broadcasting has accepted for payment all shares validly tendered and not withdrawn and will promptly pay for such shares.
As a result of the purchase of shares in the tender offer, Flynt Broadcast has sufficient voting power to approve the previously announced merger transaction contemplated among New Frontier, LFP Broadcasting and Flynt Broadcast without the affirmative vote of any other New Frontier shareholder. In order to accomplish the merger as a “short-form” merger under Colorado law for administrative convenience, Flynt Broadcast intends to exercise its “top-up” option pursuant to the merger agreement, which permits Flynt Broadcast to purchase additional shares of common stock of New Frontier directly from New Frontier for the same consideration paid to the shareholders in the offer, in order to reach the 90% ownership threshold required under Colorado law to complete a “short-form” merger. Following the merger, New Frontier will become a wholly-owned subsidiary of LFP Broadcasting, and each outstanding common share of New Frontier will be automatically and immediately cancelled and converted into the right to receive the same consideration, without interest and less any required withholding taxes, received by holders who tendered their shares in the tender offer.
Following the merger, New Frontier’s common shares will cease to be traded on NASDAQ.
Avondale Partners LLC is acting as financial advisor to the Special Committee of the Board of Directors of New Frontier Media in connection with the transaction. Alston + Bird LLP is acting as legal advisor to the Special Committee. Holland & Hart LLP is acting as legal advisor to New Frontier Media.
Lipsitz Green Scime Cambria LLP and Dinsmore & Shohl LLP are acting as legal advisors to LFP Broadcasting in connection with the transaction.
About New Frontier Media, Inc.
New Frontier Media, Inc. is a provider of transactional television services and a distributor of general motion picture entertainment. Its Transactional TV segment distributes adult content to cable and satellite providers who then distribute the content to retail consumers via video-on-
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demand (VOD) and pay-per-view (PPV) technology. Its Film Production segment is a distributor of mainstream and erotic films. The films are distributed to cable and satellite operators, premium movie channel providers and other content distributors. It acts as a sales agent for mainstream films and produce erotic films and also periodically provides contract film production services to major Hollywood studios.
About L.F.P. Inc.
L.F.P. Inc. markets the HUSTLER® brand through a wide range of media properties and licensing initiatives. LFP maintains strong businesses in broadcasting, publishing, retail, internet, mobile, apparel, novelties, clubs and video, and owns the prominent HUSTLER Casino. HUSTLER TV, now available in over 55 countries, has exclusive broadcasting rights to a large number of top studios.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. In some cases, forward-looking statements can be identified by words such as “anticipate,” “expect,” “believe,” “plan,” “intend,” “predict,” “will,” “may” and similar terms. Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated timing of filings relating to the transaction; statements regarding the expected timing of the completion of the transaction; statements regarding prospective performance and opportunities; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The forward-looking statements contained in this press release related to future results and events are based on New Frontier’s current expectations, beliefs and assumptions about its industry and its business. Forward-looking statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Actual results may differ materially from the results discussed in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, but not limited to, the risks and uncertainties discussed in documents filed with the SEC by New Frontier, including, but not limited to, the solicitation/recommendation statement filed by New Frontier. Investors and shareholders are cautioned not to place undue reliance on these forward-looking statements. Unless required by law, New Frontier undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are also urged to review carefully and consider the various disclosures in New Frontier’s SEC periodic and interim reports, including, but not limited to, its Annual Report on Form 10-K, as amended, for the fiscal year ended March 31, 2012, Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2012 and Current Reports on Form 8-K filed from time to time by New Frontier. All forward-looking statements are qualified in their entirety by this cautionary statement.
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