New Issue: Paxson notes downsized to $302.1 million (proceeds), yields 12¼%

By Paul A. Harris

St. Louis, Mo., Jan. 7 - Paxson Communications Corp. sold a downsized offering of $302.1 million (proceeds) of senior subordinated seven-year discount notes (B3/B-) at a yield of 12¼%, according to a syndicate source.

The offering, which has a four-year zero coupon, was reduced from a planned $310 million (proceeds).

"I think the deal went really well," the syndicate source said. "The consent went well. It priced right on top of (12¼%) price talk. And it has traded well in the secondary market. I heard it traded up a tic."

The source attributed the downsizing of the Paxson offering to "consent restrictions."

Salomon Smith Barney ran the books on the Rule 144A deal. UBS Warburg was joint lead and co-managers were Bear Stearns & Co. and Credit Suisse First Boston.

Issuer:	Paxson Communications Corp.
Proceeds:	$302.1 million (downsized from $310 million)
Principal amount:	$486,222,880
Maturity:	Jan. 15, 2009
Mangers	Salomon Smith Barney (books) UBS Warburg (joint)
Co-managers:	Bear Stearns & Co. and Credit Suisse First Boston
Coupon:	0%/12¼% after four years
Price:	$62.132
Yield to maturity:	12¼%
Spread:	740 basis points over the 4¾% Treasury due Nov., 2008
Call features:	Callable on Jan. 15, 2006 at 106.125, then at 103.063, declining to par on Jan. 15, 2008
Equity clawback:	Until Jan. 15, 2005 for 35% at 112.25 accreted
Settlement date:	Jan. 14 (T+5) flat
Ratings:	Moody's: B3
	Standard & Poor's: B-
Cusip:	704231AF6
End

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