Nexstar makes notable financial move


Nexstar Broadcasting GroupA new senior note offering is being put forth by Nexstar Broadcasting that will do two things – move some of its existing maturities ahead by three years and finance its latest acquisition. The acquisition, by the way, earned a round of applause from Wells Fargo.

According to Nexstar, it’s seeking $275M from the private offering. It said, “The notes will have the same terms as, and are expected to be treated as a single class with, Nexstar Broadcasting’s $250.0 million in aggregate principal amount of 6.875% senior notes due 2020 issued on November 9, 2012. The notes will be senior unsecured obligations of Nexstar Broadcasting and will be guaranteed by the Company and Mission Broadcasting, Inc.”

It will buy up any outstanding 8.875% Senior Secued Second Lien Notes which are due 2017, and will also use it to fund the $103.25M deal bringing in which Nexstar is getting three television stations from Citadel Communications and Mission  is getting two from Stainless Broadcasting.

Wells Fargo’s Marci Ryvicker said that the deal was not unexpected; indeed, expectations are for more deals to come.
She said the company expects to have a leverage level of 3x by the end of 2014, and that this deal will not affect that at all, and noted that the deal becomes accretive within the first year.

Ryvicker highlighted the Iowa angle of the deal with Citadel – Nexstar will be getting two network affiliates there, benefitting from political spending in the perpetual swing state, not to mention spending on the state’s lead-off presidential primary caucuses.