Metromedia Broadcasting Corp.

Case Analysis

Describes the market for high-yield, or “junk” bonds, with summaries of academic research on the risk / return characteristics of high-yield securities. Describes the role of Drexel Burnham Lambert in the primary and secondary markets for high-yield bonds. Decision focus is on a public offering of four high-yield securities Metromedia Broadcasting Corporation issued in November 1984. The offer was used to refinance bank debt in connection with the June 1984 Metro Media lev arise … Read more »

Describes the market for high-yield, or “junk” bonds, with summaries of academic research on the risk / return characteristics of high-yield securities. Describes the role of Drexel Burnham Lambert in the primary and secondary markets for high-yield bonds. Decision focus is on a public offering of four high-yield securities Metromedia Broadcasting Corporation issued in November 1984. The offer was used to refinance bank debt in 1984 leveraged buyout arise in connection with the Metromedia June. The securities offered Serial Zero Coupon Notes due 1988-1993, Senior Exchangeable Variable Rate Notes due 1996 15 5/8% Senior Subordinated Debentures due 1999 and Adjustable Rate Participating Subordinated Debentures due 2002 contain. The proceeds from the IPO amounted to $ 1.2 billion EUR.
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from
Scott P. Mason,
Sally E. Durdan
Source: Harvard Business School
26 pages.
Release Date: 02 Dec, in 1985. Prod #: 286044-PDF-ENG
Metromedia Broadcasting Corp. HBR case solution