Scripps Networks eyes bond market to fund 52.7% stake in TVN, deal valued at $613 million plus debt

By Lisa Kerner

Charlotte, N.C., March 16 – Scripps Networks Interactive, Inc. will use a combination of revolver availability and new bonds to fund its purchase of a majority stake in Poland’s multiplatform media company, TVN.

Details of the financing will be finalized “between now and actual closing,” said chief financial officer Lori Hickok on Monday during a conference call to discuss the transaction.

Hickok said Scripps is eyeing multiple tenors for the bonds.

“The good news for us is that the debt is still relatively cheap, and we have a very solid balance sheet and good credit rating,” Hickok said.

Hickok, when asked, said she is comfortable with the expected gross leverage of 2.7 times cash flow at closing, which is expected to occur in the second quarter.

Scripps agreed to acquire the interest in TVN for about $613 million (€584 million) and to assume debt of about $882 million (€840 million), said Kenneth W. Lowe, chairman, president and chief executive officer, on the call.

International growth is a “top priority” to expand the company’s network distribution and to build scale, said Lowe.

The company will acquire the 52.7% interest in TVN from ITI and Canal+ Group in an all-cash deal.

Under Polish law, Scripps will launch a mandatory public tender offer post-closing, further increasing its ownership in TVN.

Scripps is a Knoxville, Tenn.-based lifestyle content and interactive services company.

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