Bids on Young Broadcasting's bank debt last week were down to 100 1/4, softening from its most recent level of 100 3/8. One dealer noted that the company has yet to issue full-year guidance, which is considered a negative in the market. "The earnings came out and were a little lower than they had been. It's a tough time for [broadcasting], but it isn't going away," a dealer said. The New York City-based company owns 12 television stations across several geographic markets. Earlier this year the company announced a $750 million bond deal which pushed levels into the mid-101 range. Calls to Jim Morgan, cfo, were not returned by press time.
Traders weren't reading too much into the slight drop. "It's a normal trading range; it would move more to the bid side," said one, explaining that the dip isn't noteworthy.
The company has an $800 million credit facility that breaks down into three tranches. It matures in 2005. Pricing ranges from LIBOR plus 2 3/4% to LIBOR plus 3 1/2%. Deutsche Banc Alex. Brown, First Union Corp., and CIBC World Markets lead the deal, according to Capital DATA Loanware.