Block Communications to sell $300 million eight-year notes on Monday; initial talk low 5% area

By Paul A. Harris

Portland, Ore., Feb. 10 – Block Communications, Inc. is expected to price a $300 million offering of eight-year senior notes (unsecured ratings B1/B+) in a quick-to-market Monday trade, according to market sources.

The Rule 144A and Regulation S for life deal was scheduled to be shopped on a late-morning conference call with investors.

Initial talk has the notes coming to yield in the low 5% area, a trader said.

BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC is the joint bookrunner. Citizens Capital Markets Inc., Comerica Securities Inc., Goldman Sachs & Co. LLC, M&T and PNC Capital Markets LLC are the co-managers.

The notes become callable after three years at par plus 50% of coupon.

The Toledo, Ohio-based diversified media company plans to use the proceeds, together with a new term loan B and cash on hand, to redeem all of its existing 6 7/8% notes due 2025.

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