By Paul A. Harris
St. Louis, Dec. 12 - Young Broadcasting Inc. sold $230 million of high-yield notes in two Rule 144A/Regulation S tranches Friday, a source said.
In the first tranche, the company priced a $90 million add-on to its 8½% senior unsecured notes (B2/B) due Dec. 15, 2008 at 106.91, resulting in a yield to worst of 6½%.
Price talk for the add-on was in the area of 6½%.
Wachovia Securities and Deutsche Bank Securities ran the books.
In the second tranche, the company sold $140 million of senior subordinated notes due Jan. 15, 2014 (Caa1/CCC+) at par to yield 8¾%.
Price talk was in the area of 8¾%.
Deutsche Bank Securities and Wachovia Securities were joint bookrunners.
The New York City-based television broadcasting company plans to use proceeds of the offerings to redeem the company's 9% senior subordinated notes and its 8¾% senior subordinated notes.
Issuer: Young Broadcasting Inc.
| Amount: | $230 million
|
|
|
| Senior tranche:
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| Amount: | $90 million
|
| Security description: | Add-on to the 8½% senior unsecured notes due Dec. 15, 2008
|
| Bookrunners: | Wachovia Securities, Deutsche Bank Securities
|
| Price: | 106.91
|
| Yield to worst: | 6½%
|
| Spread: | 376 basis points
|
| Call protection: | Callable after Dec. 15, 2005 at 104.250, 102.125, par on Dec. 15, 2007 and thereafter
|
| Equity clawback: | Up to 35% at 108.50 until Dec. 15, 2004
|
| Settlement date: | Dec. 23, 2003 with accrued interest
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| Ratings: | Moody's: B2
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| Standard & Poor's: B
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| Price talk: | 6½% area
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|
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| Subordinated tranche:
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| Amount: | $140 million
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| Maturity: | Jan. 15, 2014
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| Security description: | Senior subordinated notes
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| Bookrunners: | Deutsche Bank Securities, Wachovia Securities
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| Coupon: | 8¾%
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| Price: | Par
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| Yield: | 8¾%
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| Spread: | 451 basis points
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| Call features: | Callable after Jan. 15, 2009 at 104.375, 102.917, 101.458, par on Jan. 15, 2012 and thereafter
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| Equity clawback: | Until Jan. 15, 2007 for 35% at 108.75
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| Settlement date: | Dec. 23
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| Ratings: | Moody's: Caa1
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| Standard & Poor's: CCC+
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| Price talk: | 8¾% area
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