A $2 million piece of Emmis Communications' "B" tranche traded at 1001/4 last week, with dealers describing it as a strong credit. A trader added that the quotes are between 1001/8 to 100 3/8. One market watcher noted there was a large pool of buyers supporting the credit. The Indianapolis, Ind.-based company owns and operates more than 20 radio stations in New York City, Los Angeles, and Chicago as well as two radio networks. It most recently bought Lee Enterprises for $500 million. A company spokeswoman did not return calls seeking comment.
Just two weeks ago dealers were wondering about the credit as a company spokeswoman confirmed a shift that moved $250 million of the pro rata to the term loan "B." The move has not hurt interest in the secondary market. "Maybe there was just too much pro-rata," one trader said of the credit's spin in the primary market. Toronto-Dominion Securities leads the deal. Bank officials could not be reached for comment by press time. First Union Bank, Credit Suisse Boston and Fleet Bank are the lead arrangers.