Granite Broadcasting Sets Rate on $261 Million Loan

(Corrects loan size in first and fourth paragraphs.)

Granite Broadcasting Corp., a television broadcasting provider whose network affiliations include NBC, CBS, ABC, The CW and My Network TV, set the rate it will pay on $260.6 million in loans it’s seeking to support debt repayment, according to a person with knowledge of the matter.

The company is proposing to pay interest at 6.5 percentage points more than the London interbank offered rate on the $215 million, seven-year first-lien portion, with a 1.25 percent minimum on the lending benchmark, said the person, who declined to be identified because terms are private.

Granite, based in New York, may sell the loan at 98.5 cents on the dollar, said the person, reducing proceeds for the borrower and boosting the yield for investors.

A $45.6 million second-lien portion may pay interest 15 percentage points more than Libor with a 1.5 percent minimum on the lending benchmark, the person said.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net.

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net.

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