Nexstar kicks off $1.12 billion offering of eight-year notes backing Tribune Media acquisition

By Paul A. Harris

Portland, Ore., June 13 – Nexstar Broadcasting, Inc. kicked off a $1.12 billion offering of eight-year senior notes on Thursday, according to a syndicate source.

There are plans to market the deal on an investor conference call that will take place during the June 17 week, the source added.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., MUFG, SunTrust Robinson Humphrey Inc., BNP Paribas Securities Corp. and Citizens Capital Markets Inc. are the joint bookrunners for the Rule 144A for life offering.

Fifth Third Bank, Regions Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon and feature a 40% equity clawback at par plus the coupon and a 101% poison put.

The Irving, Tex.-based diversified media company plans to use the proceeds, along with $3.74 billion of bank debt, to help fund the acquisition of Tribune Media Co., a Chicago-based owner of television and digital properties, as well as to repay existing Tribune Media debt and for general corporate purposes.

The issuing entity will be Nexstar Escrow, Inc., which is to be assumed by Nexstar Broadcasting.

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