Emmis is now armed with up to $35 million in new financing to buy back some preferred shares. The company believes the purchase prices are favorable ("below the closing price of the preferred stock on November 10"). The shares are the 6.25% Series A cumulative convertible preferred stock. The financing comes from the Zell Credit Opportunities Master Fund LP. Here is how Emmis describes the mechanism:

The Zell fund may "buy from Emmis on up to four separate occasions on or before February 2, 2012, a total of up to $35,000,000 of unsecured notes. The net proceeds from the notes are expected to be used to enable Emmis to ultimately acquire some of its Preferred Stock through privately negotiated transactions with individual Preferred Stock holders and/or through a tender offer. Interest on the notes is not payable in cash and will accrue quarterly at a rate of 22.95 percent per annum.

Here's more: "The notes [from the Zell fund] will mature in February of 2015, and contain customary representations, warranties, and indemnities, as well as covenants that are comparable to those in Emmis' senior secured credit facility, including the prohibition of any dividend payments on Emmis' capital stock and certain restrictions on the ability of Emmis to incur additional indebtedness."

Follow the Emmis common stock ("EMMS") here.