Young Broadcasting's bank debt got a nudge with the announcement of the company's tender offer on its bond deal. The bank debt traded up to 98, up from the high 97 range. The "B" paper traded in a $2.5 million swap. On Oct. 26, the company announced a tender offer. "They think the bonds have too high an interest rate and they're trying to buy them back," a dealer explained. He added that it makes the company and therefore the bank debt more appealing because it would mean Young Broadcasting would be less leveraged. Meanwhile, dealers note the broadcasting sector overall remains about flat. Emmis Communications' "B" paper was bid at 95 1/2 last week, which is about level. Calls to Vincent Young, the owner, were referred to spokesman James Morgan.
What broadcasting names have going for them, say dealers, is they're in a defensive industry. "They have good asset value, but a poor advertising environment in a weak economy," a dealer explained. The company, based in New York City, owns 12 television stations throughout the country. It has a $500 million deal that expires in 2003. Deutsche Bank, CIBC World Markets and J.P. Morgan lead the deal.