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Nexstar enters into $2.98 billion credit agreement in three tranches
By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – Nexstar Broadcasting Inc. entered into a credit agreement Tuesday providing for a $293.9 million term loan A, a $2,518,000,000 term loan B and a $169 million revolving facility, according to an 8-K filing with the Securities and Exchange Commission.
The credit agreement was entered in connection with consummation of a merger agreement that saw parent company Nexstar Media Group, Inc., formerly Nexstar Broadcasting Group, Inc., acquire Media General, Inc.
The term loan A and revolving loans accrue interest at Libor plus 200 basis points to 250 bps, depending on the company’s first-lien leverage ratio. Commitment fees are either 37.5 bps if the first-lien leverage ratio is less than 2.5 times or 50 bps otherwise.
The term loan B interest rate is Libor plus 300 bps.
Each tranche has a 0% Libor floor.
The term loan A and revolver mature in five years, and the term loan B matures in seven years.
The term loan A amortizes at 5% during the first two years, 7% in the third year and 10% in the fourth and fifth years, with the balance due at maturity.
The term loan B amortizes at 1% a year and has 101 soft call protection for six months.
Bank of America, NA, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., Barclays Bank plc and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners on the debt. Bank of America is administrative agent. MUFG, Capital Once, NA, Citizens Bank, NA and Fifth Third Bank are the co-managers.
Nexstar is an Irving, Texas-based diversified media company. Media General is a Richmond, Va.-based television broadcasting and digital media company.
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