Crown Media talks $300 million eight-year notes with 10½% area yield

By Paul A. Harris

Portland, Ore., June 28 - Crown Media Holdings, Inc. talked its $300 million offering of eight-year senior notes (B3/B-) with a yield in the 10½% area on Tuesday, according to market sources.

The deal is set to price on Wednesday morning.

Covenant changes also surfaced on Tuesday. The debt test and restricted payments stopper were decreased to 4.25 times from 5.5 times. The liens test was reduced to the greater of $240 million and two times; previously it was the greater of $300 million and 2.75 times.

J.P. Morgan Securities LLC has the books.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection.

Proceeds will be used to refinance existing debt and to redeem preferred stock.

The prospective issuer is a Studio City, Calif.-based owner-operator of cable networks and related businesses.

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