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Mission, Nexstar get commitments for $234 million incremental loans
By Susanna Moon
Chicago, July 5 - Mission Broadcasting, Inc. and Nexstar Broadcasting, Inc. amended their senior secured credit facilities June 28, according to an 8-K filing with the Securities and Exchange Commission.
The amendments provide commitments for incremental term loan facilities of $90 million to Mission and of $144 million to Nexstar, subject to reallocation of up to $18 million for the benefit of Rocky Creek Communications, Inc.
Interest on the term loan commitments will be Libor plus 225 basis points initially, with a spread of 175 bps to 250 bps based on leverage. The unused fee is 50 bps.
At closing, Nexstar received initial proceeds of $50 million under its committed term loan, which was used to repay $27 million of outstanding revolving loans with the remainder to be used for general corporate purposes.
The remainder of the commitments are expected to be used by Mission, Nexstar Broadcasting and Rocky Creek to finance the acquisitions of television stations from Communications Corp. of America and White Knight Broadcasting under the stock purchase agreement dated April 24.
The principal amounts under the term loan A commitments are reduced by quarterly payments that increase over time from 5% to 10%, beginning on June 30 until maturity on June 15, 2017. The maturity date may be extended to June 28, 2018 under some circumstances. The remainder of the principal is due in full at maturity.
Bank of America, NA is the administrative agent.
Mission is a television station group based in Brecksville, Ohio, and Nexstar is a television station group based in Irving, Texas. Mission's stations are managed by Nexstar through local marketing agreements.
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