LIN Media has closed on the refinancing deal with its bankers that it announced early this month. The new deal added an incremental term loan under its existing senior secured credit facilities.
The incremental facility is a seven-year, $260 million term loan, priced at LIBOR+375, with a 1.25% LIBOR floor and was issued at a price of 99.0. Borrowings under the new incremental facility are being used to redeem LIN Television’s 6 1/2% Senior Subordinated Notes due 2013 and 6 1/2% Senior Subordinated Notes due 2013 – Class B (the “2013 Notes”), and to pay accrued interest, fees and expenses associated with the transaction.
Additionally, on December 21st LIN Television issued notices to call all of the outstanding 2013 Notes on January 20, 2012, at a redemption price of 100% of the principal amount plus accrued and unpaid interest to the redemption date.
“This transaction completes the staged refinancing of our credit facilities and our 2013 Notes. At current borrowing rates, this series of transactions reduces LIN’s weighted average cost of debt to 5.6% and its annual cash interest cost by close to $9 million,” said CFO Richard Schmaeling.