New Issue: LIN TV $100 million exchangeables yield 2.5%, up 72.5%

By Ronda Fears

Nashville, May 6 - LIN Television Corp. sold $100 million of 30-year exchangeable subordinated notes, which convert into class A shares of its parent LIN TV Corp., at par to yield 2.5% with a 72.5% initial conversion premium, with a warrant kicker, via Deutsche Bank Securities Inc., JPMorgan and Morgan Stanley.

The overnight Rule 144A deal sold tighter than the yield talk of a 2.75% to 3.25% coupon and in the middle of premium guidance of 70% to 75%.

The television company also sold $200 million of 10-year senior notes at par to yield 6.5%. Proceeds from the sale offerings will be used to redeem its existing 8.375% senior subordinated notes due 2008.

Terms of the deal are:

Issuer: LIN Television Corp.

Issue:	Exchangeable subordinated notes
Lead managers:		Deutsche Bank Securities, JPMorgan and Morgan Stanley
Amount	$100 million
Greenshoe:	$25 million
Maturity:	May 15, 2033
Coupon:	2.5%
Price:	Par
Yield:	2.5%
Conversion premium:	72.5%
Conversion price:	$37.28
Conversion ratio:	Base 26.824, capped at 46.27; fixed at year five
Warrants:	Equivalent of 0.88 x 26.824 base conversion ratio, or 19.45 warrants per bond
Call:	Non-callable for 5 years
Put:	In years 5, 10, 15, 20 and 25
Contingent conversion:	120%
Contingent payment:	120%
Ratings:	Moody's: B2
	S&P: B
Settlement:	May 12

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.