The common pattern now is for a company to sell bonds in a private offering, then register new bonds for public trading and exchange them a few months later. That’s what Nexstar is doing now with the $325 million of debt it sold in April of last year.
The 8.875% senior secured second lien notes due 2017 were jointly issued by Nexstar Broadcasting Group’s wholly-owned subsidiary, Nexstar Broadcasting Inc., and Mission Broadcasting Inc. Nexstar supplies services to Mission stations in multiple markets where both own TV stations.
The new notes offered in the exchange are identical in terms to the existing notes, except that they are registered for public trading. The exchange offer is scheduled to expire on February 8th.
Nexstar owns 63 stations in 34 markets and Mission owns 16 stations in 14 markets.