Published on 9/17/2013 in the Prospect News High Yield Daily.
New Issue: Nexstar prices $275 million tap of its 6 7/8% notes due 2020 at 100.25
By Paul A. Harris
Portland, Ore., Sept. 17 - Nexstar Broadcasting, Inc. priced a $275 million tack-on to its 6 7/8% senior notes due Nov. 15, 2020 (Caa1/B/) at 100.25 to yield 6.814% on Tuesday, according to a syndicate source.
The reoffer price came in the middle of the 100 to 100.5 price talk.
Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBC Capital Markets, BofA Merrill Lynch, Barclays, and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
Proceeds, together with an incremental amendment to Nexstar's and Mission Broadcasting, Inc.'s existing credit facilities and cash on hand, will be used to repurchase Mission's outstanding 8 7/8% senior secured second-lien notes due 2017, to fund Nexstar's and Mission's proposed acquisition of five television stations in four markets from Citadel Communications, LP and Stainless Broadcasting, LP and for general corporate purposes.
Nexstar is an Irving, Texas-based television station operator in small- to medium-sized markets.
| Issuer: | Nexstar Broadcasting, Inc.
|
| Face amount: | $275 million
|
| Proceeds: | $275.7 million
|
| Maturity: | Nov. 15, 2020
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, RBC Capital Markets, BofA Merrill Lynch, Barclays, SunTrust Robinson Humphrey Inc.
|
| Coupon: | 6 7/8%
|
| Price: | 100.25
|
| Yield to worst: | 6.814%
|
| Spread: | 517 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2015, then callable at 105.156, 103.438, 101.719, par on and after Nov. 15, 2018
|
| Equity clawback: | 35% at 106.875 until Nov. 15, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 17
|
| Settlement date: | Oct. 1 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 100 to 100.5
|
| Marketing: | Quick to market
|
| Original issue: | $250 million issue priced on Oct. 24, 2012
|
| Total issue size: | $525 million
|
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