The vote was nearly unanimous as Nexstar asked its senior subordinated note holders to exchange their old notes for new ones that pay in-kind, instead of with cash. In fact, the offer was over-subscribed.
Despite the view from Moody’s Investors Service that the swap offer was “tantamount to a default,” Nexstar reports that 99.6% of its 7% senior subordinated notes due 2014 were tendered to be exchanged for 7% senior subordinated payment-in-kind (PIK) notes due 2014 and a cash payment. Since $190.7 million of the old notes were tendered by the March 26th deadline and the offer from Nexstar was limited to $143.6 million, the actual exchange will be pro rated.
Post-exchange, Nexstar now has $142,320,761 of the new PIK notes outstanding and $47,910,000 of the old notes.