Young Broadcasting issues talk on two-tranche $230 million offering, pricing Friday

By Paul A. Harris

St. Louis, Dec. 11 - Price talk emerged Thursday on a $230 million two-tranche Rule 144A offering from Young Broadcasting Inc., which is expected to price on Friday, according to an informed source.

The first tranche, a $90 million add-on to the company's 8½% senior notes due Dec. 15, 2008 (B2/B), is talked to yield in the 6½% area. Wachovia Securities and Deutsche Bank Securities are bookrunners on the tranche.

The notes are callable after Dec. 15, 2005 at 104.25, then at 102.125, and at par on Dec. 15, 2007 and thereafter. The notes also contain a 35% equity clawback at 108.50 until Dec. 15, 2004.

Meanwhile price talk is in the 8¾% area on a $140 million offering of senior subordinated notes due Jan. 15, 2014 (Caa1/CCC+). The bookrunners switch positions on the subordinated tranches, with Deutsche Bank Securities on the left, along with Wachovia Securities.

The subordinated notes will be non-callable for five years and will contain a three-year 35% equity clawback.

The New York City-based television broadcasting company's plans to use proceeds to redeem its 9% senior subordinated notes and the 8¾% senior subordinated notes.

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