Report: Silver Point Kicking Young Tires
Silver Point Capital may be bullish on grabbing the Young stations, reports TV Newsday, based on Silver Point reportedly buying up Young Broadcasting’s considerable debt. The hedge fund already has Granite and Communications Corp. of America in its portfolio, and may not be done acquiring media assets.
The word is that Silver Point is going after Young’s bonds, says Bishop Cheen, an analyst at Wachovia Capital Markets. "But it makes more sense for Silver Point to take a position in Young’s secured bank debt," he says. "In order to control the body you have to control the head. Anyone who’s going to take over and control Young has to control bank debt."
Young hired Moelis & Co. back in January to help it deal KRON San Francisco as soon as possible–boss Vincent Young said he wanted the deal done in the first quarter. KRON of course remains on the Young books.
Young did not comment.