Emmis Communications bank debt jumped to slightly above 100 from the 97 range on news of an amended credit facility. Dealers reported two $5 million chunks changed hands. Early last week, Emmis announced financial covenant relief that would last until Dec. 1, 2002. The amendments allow for the company's leverage ratio to increase to a total of 8.5 times over the next four quarters. Walter Berger, executive v.p. and cfo, stated that the company is committed to reducing its leverage. Calls to his office for additional comment were not returned by press time. Kate Healey, director of media and investor relations, declined to comment.
In light of the Sept. 11 attacks, the company also issued revised third- and fourth-quarter figures. The Indianapolis-based company has radio broadcasting, television-broadcasting and magazine publishing operations. Emmis' facility breaks down into a $400 million revolver, a $600 million term loan "A," and a $400 million "B" term loan. TD Securities leads the deal. First Union Bank, Credit Suisse First Boston and FleetBoston are the mandated arrangers.