Meredith plans $875 million credit facilities for spinoff

By Sara Rosenberg

New York, May 3 – Meredith Corp. (National Media Group) has received a commitment for $875 million of credit facilities to help fund its spinoff into a stand-alone company and refinance some existing debt, according to an 8-K filed with the Securities and Exchange Commission on Monday.

RBC Capital Markets and Barclays provided the debt commitment.

The facilities consist of a $150 million revolver and $725 million of secured term loans.

Des Moines-based Meredith is spinning off to its existing shareholders its National Media Group operating division, which owns a portfolio of magazines as well as digital and marketing assets, and selling its other operating division, known as the Local Media Group, which owns television stations, to Gray Television Inc.

The spun off National Media Group company will retain the Meredith name, and shareholders will receive cash consideration per share of about $14.50 and 1-for-1 equity share in the post-close Meredith.

Leverage is expected to be about 2x adjusted EBITDA.

Closing is targeted for the fourth quarter, subject to shareholder approval, customary conditions and regulatory approvals.

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