Citadel Broadcasting $300 million convert talked at 1.5-2.0% yield, 30-35% premium

By Ronda Fears

Nashville, Feb. 5 - Citadel Broadcasting Corp. launched $300 million of seven-year convertible notes with guidance for a 1.5% to 2.0% coupon and 30% to 35% initial conversion premium.

Credit Suisse First Boston is sole bookrunner of the Rule 144A deal, which is set to price after the close Wednesday.

The subordinated notes will have a provisional call threshold of 150% for life, with a make-whole feature.

Holders will have full dividend protection for the life of the issue.

There is a $60 million greenshoe available.

Las Vegas-based Citadel, a radio broadcaster, plans to use the proceeds to redeem a portion of its outstanding 6% subordinated debentures. If there are any remaining proceeds, the company said it would repay a portion of its revolving credit facility.

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