By Paul A. Harris
Portland, Ore., July 12 – E.W. Scripps Co. priced an upsized $500 million issue of eight-year senior notes (B3/B-/B) at par to yield 5 7/8% on Friday, according to market sources.
The issue size was increased from $400 million.
The yield printed at the tight end of yield talk in the 6% area.
The deal was heard to be playing to $1.9 billion of orders on Thursday, at initial guidance in the low-to-mid 6% area, according to an investor.
The issuing entity will be Scripps Escrow, Inc.
Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
The Cincinnati-based broadcasting and digital media company plans to use the proceeds to help fund the acquisition of eight TV stations in seven markets from the Nexstar Media Group Inc.-Tribune Media merger divestitures.
The additional proceeds resulting from the $100 million upsizing of the deal will be used to pay down the revolving credit facility.
Issuer: | Scripps Escrow, Inc.
|
Amount: | $500 million, increased from $400 million
|
Maturity: | July 15, 2027
|
Securities: | Senior notes
|
Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
Coupon: | 5 7/8%
|
Price: | Par
|
Yield: | 5 7/8%
|
Spread: | 383 bps
|
First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2022, then callable at 104.406
|
Equity clawback: | 40% at 105.875 until July 15, 2022
|
Trade date: | July 12
|
Settlement date: | July 26
|
Ratings: | Moody's: B3
|
| S&P: B-
|
| Fitch: B
|
Distribution: | Rule 144A for life and Regulation S
|
Price talk: | 6% area
|
Marketing: | Roadshow
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.