Indirect wholly-owned Nexstar Media Group subsidiary Nexstar Escrow on Wednesday closed the previously announced offering of billions of dollars in aggregate principal amount of 5.625% new senior notes due 2027, which priced at 100% in a private offering.
The Escrow Issuer, which was created solely to issue the Notes, will deposit the gross proceeds of the offering into a segregated escrow account until the date that certain escrow release conditions are satisfied.
The Notes will be senior unsecured obligations of the Escrow Issuer. Prior to the release of the proceeds from escrow, the Escrow Issuer will merge with and into Nexstar Broadcasting.
Upon the release of the proceeds from escrow, Nexstar Broadcasting will assume the obligations under the Notes and the Notes will be guaranteed by the Company, Mission Broadcasting, and certain Nexstar Broadcasting and Mission future restricted subsidiaries on a senior unsecured basis.
Nexstar Broadcasting intends to use the net proceeds from the proposed offering, together with borrowings under future secured indebtedness, to fund its proposed acquisition of Tribune Media, to partially fund the repayment of all of Tribune’s existing indebtedness, to pay other fees and expenses related to Nexstar’s acquisition of Tribune, and the related refinancing and for general corporate purposes.