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Weather Channel sets $1 billion term loan pricing at Libor plus 425 bps, OID 97
By Sara Rosenberg
New York, July 10 - The Weather Channel firmed up pricing on its $1 billion term loan at Libor plus 425 basis points with an original issue discount of 97, according to a market source.
There is a 3.25% Libor floor.
Pricing on the deal was able to be set now that a conference call with select investors took place on Wednesday, the source said.
Early price talk on the term loan had been circulating in the area of Libor plus 400 bps to 425 bps with a 3.25% Libor floor and an original issue discount in the range of 97 to 98.
Weather Channel's $1.2 billion credit facility also includes a $200 million revolver with pricing still to be determined, the source added.
Deutsche Bank and GE Capital Markets are the co-lead arrangers on the credit facility, with Deutsche the left lead.
Proceeds will be used to help fund the acquisition of the company by NBC Universal, Bain Capital and Blackstone Group from Landmark Communications for about $3.5 billion.
Following completion of the buyout, which is expected by year-end, Weather Channel will be operated as a separate entity, based in Atlanta, with management services to be provided by NBC Universal.
The transaction includes The Weather Channel Networks, a cable network, The Weather Channel Interactive, which includes the web site weather.com, and Weather Services International, a weather forecasting provider.
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