Belo prices $275 million bond offering


Belo Corporation said it was planning to sell $250-275 million of new senior notes – and demand was good, so the final offering was the full $275 million. The new notes, due 2016, carry a coupon of 8% and priced at 98.045% of face value, for a yield of 8.375%.

Belo said it intends to use the net proceeds from the offering to reduce its borrowings under the company’s revolving credit facility, which, as previously reported, is to be amended and extended upon closing of the note offering. “The amendment will provide greater flexibility under the facility’s leverage and interest covenants and also reduce the commitments to approximately $461 million through June 7, 2011 and approximately $205 million thereafter through expiration of the facility on December 31, 2012,” Belo noted.

JP Morgan and Bank of America Securities managed the bond sale.