Moody's: LBI Media transaction is limited default

Moody's Investors Service said that LBI Media Inc.'s recently announced plans to exchange its 8½% senior subordinated notes due 2017 and LBI Media Holdings, Inc.'s 11% senior discount notes due 2013 at a combined 48% to 55% discount to par is a limited default

To the extent the company is able to complete at least a portion of the debt exchanges at a significant discount, Moody's said it would view the transaction as a limited default.

Accordingly, the agency said it would likely change the probability of default rating to Caa2/LD to record the deemed limited default event. Moody's would remove the "LD" approximately three days later.

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