S&P: Nexstar, Mission on developing watch

Standard & Poor's said it placed the B rating on the $325 million senior secured second-lien notes due 2017 issued by Nexstar Broadcasting Inc. and Mission Broadcasting Inc. on CreditWatch with developing implications.

All other ratings, including the group's B corporate credit rating, are unchanged.

The outlook is stable.

The agency also said it expects to withdraw the BB- rating on the existing senior secured credit facility and the CCC+ rating on the senior subordinated notes when they are repaid.

The watch reflects Nexstar's plans to issue new debt to refinance its existing senior secured credit facility, repay its senior subordinated notes and fund the acquisition of 12 stations from Newport Television Holdings, S&P said.

If the group's new capital structure consists of first-lien debt equal to 3.5x EBITDA or more, the issue-level rating on the second-lien notes could be lowered to a B- from a B, the agency said.

However, if the new capital structure consists of first-lien debt equal to 2x EBITDA or less and the amount of second-lien debt stays the same, the agency said it could raise the issue-level rating on the second-lien notes to B+ from B.

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