Meredith Corp. has priced its offering of $300 million aggregate principal amount of 6.500% senior secured notes due 2025 at par.
At the same time, the owner of 17 broadcast TV stations announced that it has allocated $410 million of incremental term loans at an interest rate of LIBOR + 4.25%.
Meredith intends to use the net proceeds of the Senior Notes offering and incremental term loans, along with cash on hand, to redeem in full the outstanding Series A Preferred Stock and to pay fees and expenses related to the redemption, the Senior Notes offering and the borrowing of the incremental loans.
Meredith expects to close the financing transactions on or about Monday (6/29), and to complete the redemption of the Series A Preferred Stock promptly thereafter, subject to customary closing conditions.
As of 1:30pm Eastern Meredith shares were trading at $13.88, off 3.5% from Thursday’s close.