Sinclair Broadcasting's "B" paper traded at 1005/8 last week, which is up slightly from previous levels. In a slowing economy, broadcasting companies have been hit by lower ad revenue, but dealers say the credit levels are strong. "Sinclair is still challenged by weak advertising, but they just came out with reasonably good numbers," a dealer said. Pointing to other strong paper in the sector, he noted Paxson Communications' deal is trading at 101 and Emmis Communications' credit is trading at 101 1/4. Calls to Sinclair in Hunt Valley, Md., were not returned.
Sinclair secured a $500 million deal in May that breaks down into two tranches and expires in 2009. J.P. Morgan, Bank of Nova Scotia, Deutsche Banc Alex. Brown and First Union are the lead arrangers. Pricing is LIBOR plus 3 1/2%.