Nexstar Broadcasting to launch $2.85 billion term loan B on Tuesday

By Sara Rosenberg

New York, Sept. 9 – Nexstar Broadcasting Group Inc. scheduled a bank meeting for Tuesday to launch its proposed $2.85 billion seven-year covenant-light term loan B, according to a market source.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphry Inc., Barclays and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the debt.

Based on filings with the Securities and Exchange Commission, the company’s $3,295,000,000 senior secured credit facility (Ba3) is also expected to include a $175 million five-year revolver and a $270 million five-year term A.

The filings said the term loan B is expected at Libor plus 425 basis points with a 1% Libor floor and 101 soft call protection for six months, and the revolver and term loan A are expected at Libor plus 325 bps.

Proceeds will be used to help fund the acquisition of Media General Inc. for $10.55 per share in cash and 0.1249 of a share of Nexstar class A common stock for each Media General share.

The company also has a commitment for a $250 million 18-month senior secured short-term term facility, which will be reduced by the amount of unrestricted cash and cash equivalents on hand at Nexstar and Media General immediately prior to the consummation of the merger in excess of certain divesture proceeds received by Nexstar.

Pricing on the short-term facility is expected at Libor plus 325 bps, the filings disclosed.

Closing is expected in the third quarter or early in the fourth quarter, subject to a vote by stockholders of Media General and Nexstar, FCC approval and other regulatory approvals, and other customary conditions.

Upon closing, Nexstar will change its name to Nexstar Media Group Inc.

Nexstar is an Irving, Texas-based diversified media company. Media General is a Richmond, Va.-based television broadcasting and digital media company.

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