Granite Broadcasting to redeem 10 3/8% notes, 9 3/8% notes with new-deal proceeds

New York, Nov. 24 - Granite Broadcasting Corp. (Caa3/CC) said it will use part of the proceeds of an offering of $300 million of new senior secured notes due 2010 to redeem at par all of its outstanding 10 3/8% senior subordinated notes due May 2005 and 9 3/8% senior subordinated notes due December 2005.

The company had issued $175 million of the 10 3/8% notes in May 1995 and $110 million of the 9 3/8% notes in February 1996. It did not say how much of each issue is currently still outstanding.

Granite, a New York-based television station ownership group, plans to use the rest of the anticipated proceeds to repay all outstanding borrowings under its credit agreement, which matures in April 2004, and for general corporate purposes.

The company did not outline a timeframe for the expected repurchase of the 10 3/8% notes and the 9 3/8% notes. It said that the offering of new debt is expected to close in December.

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