Young Broadcasting ups payment on offer for 8½% notes

New York, April 26 - Young Broadcasting Inc. said it has increased the payment in its tender offer and consent solicitation for its $246.89 million of 8½% senior notes due 2008.

Pricing will now be based on a spread of 50 basis points over the reference Treasury instead of 75 basis points previously.

Pricing will now be fixed at 10 a.m. ET on April 28 instead of April 22.

The consent deadline was extended to 5 p.m. ET on April 29 instead of April 25, and the offer will now end at 5 p.m. ET on May 13 instead of May 9.

As of the old consent deadline, holders had tendered $98.549 million or 39.92% of the notes, down from $121.339 million or 49.15% at 5 p.m. ET on April 22.

At its previous announcement on April 25, Young extended the consent deadline to April 25 from April 22.

At its previous announcement on April 22, Young announced pricing in the offer, saying it will pay $1,069.56 per $1,000 for notes tendered by the consent deadline, which includes a consent payment of $30.00 per $1,000.

The New York-based television company announced the offer on April 11 and said it would fund it with proceeds from a planned amendment and restatement of its credit facility. Completion of the facility is a condition to the tender.

For each $1,000 principal amount of the notes, Young is offering the present value on the early payment date of the sum of $1,042.50 plus interest from the payment through Dec. 15, 2005 minus accrued interest up to the payment date. The present value will be set using a spread of 50 basis points over the yield to maturity of the 1.875% U.S. Treasury note due Nov. 30, 2005. The total includes a $30.00 per $1,000 consent payment that will only be paid to holders who tender with consents by the consent deadline.

Young will also pay accrued interest up to but excluding the payment date.

The consent solicitation is to eliminate substantially all of the restrictive covenants and certain events of default in the note indenture.

Holders may not tender without delivering consents and vice versa.

The offer is subject to the receipt of consents from holders of a majority of the notes.

Wachovia Securities (704 715-8341 or 866 309-6316), Lehman Brothers (212 528-7581 or 800 438-3242) and Merrill Lynch (212 449-4914 or 888 ML4-TNDR) are dealer managers and solicitation agents.

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