Cox Media talks $1.88 billion term loan B at Libor plus 400-425 bps

By Sara Rosenberg

New York, Dec. 2 – Cox Media Group (Terrier Media Buyer Inc.) launched on Monday its $1,875,000,000 seven-year term loan B with price talk of Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $2.2 billion of credit facilities (Ba3/BB-) also include a $325 million five-year revolver.

RBC Capital Markets, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mizuho are the joint lead arrangers on the deal.

Commitments are due at noon ET on Dec. 12, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management Inc. from Cox Enterprises Inc.

Other funds for the transaction will come from $1,165,000,000 of eight-year senior unsecured debt.

Closing is expected in mid-to-late December.

First-lien leverage is 3.7x and total leverage is 6x.

Cox Media is an Atlanta-based broadcasting, publishing, direct marketing and digital media company.

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