Media General looks to amend term B-1 to eliminate leverage covenant

By Sara Rosenberg

New York, Nov. 4 – Media General Inc. is seeking an amendment to its term loan B-1 due July 2020 that would remove the net total leverage covenant, resulting in the tranche becoming covenant-light, according to a market source.

RBC Capital Markets LLC is the lead bank on the amendment.

No call was held to launch the amendment as lenders were pretty much expecting this after the company’s recently marketed term loan B-2 due July 2020 was so well received that it was upsized to $825 million from $325 million, its issue price tightened to 98¾ from 98½ and shifted to a covenant-light structure with the removal of a maximum total net leverage covenant, the source explained.

Lenders are being offered a 25 bps amendment fee.

Consents are due at 5 p.m. ET on Thursday, the source added.

Both the term loan B-1 and the term loan B-2 are priced at Libor plus 325 basis points with a 1% Libor floor.

Media General is a Richmond, Va.-based local television broadcasting and digital media company.

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