By Paul A. Harris
Portland, Ore., July 12 – E.W. Scripps Co. priced an upsized $500 million issue of eight-year senior notes (B3/B-/B) at par to yield 5 7/8% on Friday, according to market sources.
The issue size was increased from $400 million.
The yield printed at the tight end of yield talk in the 6% area.
The deal was heard to be playing to $1.9 billion of orders on Thursday, at initial guidance in the low-to-mid 6% area, according to an investor.
The issuing entity will be Scripps Escrow, Inc.
Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. were the joint bookrunners.
The Cincinnati-based broadcasting and digital media company plans to use the proceeds to help fund the acquisition of eight TV stations in seven markets from the Nexstar Media Group Inc.-Tribune Media merger divestitures.
The additional proceeds resulting from the $100 million upsizing of the deal will be used to pay down the revolving credit facility.
| Issuer: | Scripps Escrow, Inc.
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| Amount: | $500 million, increased from $400 million
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| Maturity: | July 15, 2027
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| Securities: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, SunTrust Robinson Humphrey Inc., BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
|
| Coupon: | 5 7/8%
|
| Price: | Par
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| Yield: | 5 7/8%
|
| Spread: | 383 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2022, then callable at 104.406
|
| Equity clawback: | 40% at 105.875 until July 15, 2022
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| Trade date: | July 12
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| Settlement date: | July 26
|
| Ratings: | Moody's: B3
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| S&P: B-
|
| Fitch: B
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 6% area
|
| Marketing: | Roadshow
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