Anticipation of weak earnings nudged down levels of Emmis Communications' bank debt early last week to 99 3/8, but the paper rebounded back to 100 3/8 when the numbers were released. Pieces of $5-10 million were reportedly traded as the paper moved down. He said Emmis is viewed as an attractive credit because of the protection to shareholders. "Most investors view Emmis as having moderate senior leverage and as a result [think they] should be well protected," one dealer said. The identity of buyers and sellers could not be determined by press time.
"Broadcasting is a good sector that has good asset value," one trader noted. He said with the Olympics and elections over, the industry might take a slight hit. 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.
Dealers speculated two weeks ago that the new $1.4 billion facility was undergoing a restructuring and that $250 million of the pro rata had been put in the term loan "B." Toronto-Dominion Securities leads the deal. Bank officials could not be reached for comment by press time. First Union Bank, Credit Suisse First Boston and Fleet Bank are the lead arrangers.