New Issue: Granite Broadcasting upsizes seven-year notes to $405 million, yield 10%

By Paul A. Harris

St. Louis, Dec. 8 - Granite Broadcasting Corp. priced an upsized offering of $405 million of 9¾% senior secured notes due Dec. 1, 2010 (B3/CCC) at 98.782 on Monday resulting in a 10% yield, according to a syndicate source.

The deal was increased from $300 million. Price talk was for a yield of 9¾%-10%.

JP Morgan was the bookrunner on the Rule 144A deal. Banc of America Securities and Goldman Sachs & Co. were co-managers.

Granite will use proceeds to repay bank debt and to call its 10 3/8% notes and 9 3/8% notes at par.

The issuer is a New York-based owner and operator of eight network-affiliated TV stations.

Issuer:	Granite Broadcasting Corp.
Face amount:	$405 million (from $300 million)
Gross proceeds:	$400 million
Maturity:	Dec. 1, 2010
Security description:	Senior secured notes
Bookrunner:	JP Morgan
Co-managers:	Banc of America Securities, Goldman Sachs & Co.
Coupon:	9¾%
Price:	98.782
Yield:	10%
Spread:	617 basis points
Call features:	Callable after Dec. 1, 2006 at 109.75, then 104.875, 102.438, declining to par on Dec. 1, 2009 and thereafter
Equity clawback:	Until Dec. 1, 2005 for 35% at 109.75
Settlement date:	Dec. 22 (T+10)
Ratings:	Moody's: B3
	Standard & Poor's: CCC
Rule 144A Cusip:	387241AL6
Price talk:	9¾%-10%

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