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LIN Television plans $500 million credit facility for purchase of Emmis stations
By Sara Rosenberg
New York, Sept. 21 - LIN Television Corp. plans to get a new $500 million credit facility in connection with its acquisition of some stations from Emmis Television Broadcasting, according to an 8-K filed with the Securities and Exchange Commission Wednesday.
The facility will consist of a $250 million six-year revolver and a $250 million six-year delayed-draw term loan.
Proceeds will be used to refinance the company's existing credit facility, to fund the purchase of five network-affiliated television stations from Emmis for $260 million in cash and for general corporate purposes, including potential share repurchases.
The company also plans to repay some of the outstanding debt under its credit facility using proceeds from a proposed $175 million senior subordinated notes offering that is expected to kickoff with a roadshow on Thursday.
The Emmis Stations, which LIN agreed to acquire in August, serve the Mobile, Ala., Green Bay, Wis., Terre Haute, Ind., and Albuquerque, N.M., markets.
The agreement provides for the possibility of different closing dates for each station group. The closing dates are expected to occur during the fourth quarter through the second quarter of 2006 depending on when Federal Communications Commission consent is received. At each partial closing, LIN Television will pay the amount allocated to the applicable station.
LIN is a Providence, R.I.-based owner and operator of television stations.
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