New Issue: Emmis upsized $350 million seven-year notes yield Libor plus 587.5 bps

By Paul A. Harris

St. Louis, June 16 - Emmis Communications Corp. priced an upsized $350 million issue of seven-year senior floating-rate notes (B3/B-) at par to yield three-month Libor plus 587.5 basis points, according to a syndicate source.

Price talk was three-month Libor plus 587.5 bps.

Banc of America Securities LLC ran the book for the Rule 144A with registration rights offering. Deutsche Bank Securities and Merrill Lynch & Co. were co-managers.

The notes contain a step-up provision: the interest rate has 50 basis point rate step-ups in months 12, 18 and 24, with a 150 bps maximum.

Proceeds will be used to help repurchase up to $400 million of the company's class A common stock.

The issuer is an Indianapolis-based diversified media company.

Issuer:	Emmis Communications Corp.
Amount:	$350 million (increased from $325 million)
Maturity:	June 15, 2012
Security description:	Senior floating-rate notes
Bookrunner:	Banc of America Securities LLC
Co-managers:	Deutsche Bank Securities, Merrill Lynch & Co.
Coupon:	Three-month Libor plus 587.5 bps
Price:	Par
Yield:	Three-month Libor plus 587.5 bps
Call features:	Callable at par on Dec. 15, 2005, then 102, 101, par
Step up features:	The interest rate steps up 50 bps on June 15, 2006, Dec. 15, 2006 and June 15, 2007, with a 150 bps maximum
Trade date:	June 16
Settlement date:	June 21
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	Three-month Libor plus 587.5 bps

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