Dex Media, Inc., one of the largest national providers of local marketing solutions for local businesses, announced that its prepackaged plan of reorganization (“the Plan”) was confirmed today by the U.S. Bankruptcy Court in the District of Delaware (the “Court”). This represents the final legal step before Dex Media can emerge from Chapter 11 within the next few weeks with $1.8 billion less total debt and significantly increased financial flexibility.

“Today’s confirmation of our Plan by the Court is the final legal step in securing the capital structure we need to execute our strategy and achieve long-term, sustainable growth,” said Joe Walsh, Dex Media President and CEO. “When the Plan becomes effective and we emerge from Chapter 11, we will have enhanced financial flexibility to deepen our investment in our products and services so that we remain on the cutting edge of helping local businesses thrive in today’s highly competitive and dynamic market.”

As previously disclosed, material terms of the confirmed Plan include:

• Dex Media’s total debt will be reduced from $2.4 billion to $600 million.
• Dex Media’s senior secured lenders will exchange their current $2.12 billion of claims for a new $600 million first-lien term loan; 100% of the equity of the reorganized Dex Media, subject to dilution from a management incentive plan; and a cash distribution upon emergence from bankruptcy.
• Dex Media’s unsecured noteholders will receive a $5 million cash payment and warrants to purchase up to 10% of the post-reorganized equity in exchange for their approximately $300 million in claims.
• All allowed trade vendor claims will be paid in full.

Dex Media will emerge from Chapter 11 as a privately held company. All of Dex Media’s current outstanding shares of common stock will be canceled with no distribution to the existing holders.

Dex Media’s legal advisor in connection with the restructuring is Kirkland & Ellis LLP. Alvarez & Marsal North America, LLC serves as its restructuring advisor, and Andrew Hede from Alvarez & Marsal serves as Chief Restructuring Officer. Moelis & Company LLC is the company’s investment banker for the restructuring. The steering committee of the ad hoc group of Dex Media’s senior secured lenders is represented by Milbank, Tweed, Hadley & McCloy LLP as legal advisor and Houlihan Lokey as financial advisor in connection with the restructuring. JPMorgan Chase Bank, N.A. and Deutsche Bank Trust Company Americas, as agents under certain of the senior secured credit agreements, are represented by Simpson Thacher & Bartlett LLP as legal advisor to the agents.

The Plan and related Chapter 11 materials are available at http://dm.epiq11.com/DexMedia.

Dex Media is a full-service media company offering integrated marketing solutions that deliver measurable results. As the marketing department for hundreds of thousands of local businesses across the U.S., Dex Media helps them win, keep and grow their customer base.