Nexstar holders tender nearly all 7% notes in offer for up to $143.6 million

By Susanna Moon

Chicago, March 30 - Nexstar Broadcasting, Inc. said investors tendered $190,731,000 principal amount, or 99.6%, of its $191.51 million 7% senior subordinated notes due 2014, exceeding the minimum condition of $114.9 million in the exchange offer.

An exchange offer for the notes began on Feb. 27 and expired at midnight ET on March 26. March 10 was the early tender deadline.

The company offered to exchange up to $143.6 million of the notes for up to $143.6 million of its 7% senior subordinated pay-in-kind notes due 2014 and cash.

The principal amount of old notes tendered in the exchange offer in excess of $143.6 million was reduced on a pro rata basis.

Accordingly, Nexstar issued $142,320,761 principal amount of new notes on March 30 in exchange for the tendered old notes.

As a result of the exchange offer, there is $47.91 million principal amount of the old notes outstanding.

Through Jan. 15, 2011, interest on the new notes will be payable in kind. It will accrue at 0.5% per year, calculated on a semiannual bond equivalent basis, so that as of Jan. 15, 2011, the total principal amount of all new notes will be $1,000. After that, new notes will accrue interest at 7% per year.

On March 11, Nexstar said it had received tenders for about $186.76 million of its $191.51 million 7% notes as of March 10.

The total payment includes an early participation fee of $30.00 per $1,000 principal amount of notes tendered by the early tender deadline, which is in addition to the $93.10 per $1,000 principal amount of notes tendered by the expiration date.

Nexstar is a subsidiary of Irving, Texas-based television station operator Nexstar Broadcasting Group, Inc.

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