Nexstar Broadcasting Group announced that its wholly-owned subsidiary, Nexstar Broadcasting Inc., plans to offer $325 million in new notes. At the same time, Nexstar is reworking the terms of its senior credit facilities.
The $325.0 million in new senior secured second lien notes will be co-issued by Nexstar and Mission Broadcasting, which owns numerous stations in virtual duopolies with Nexstar stations.
The notes will be secured on a second priority basis, subject to certain exceptions and certain permitted liens, by Nexstar Broadcasting’s, Mission’s and the guarantors’ assets that secure each of Nexstar Broadcasting and Mission’s senior secured credit facilities on a first priority basis. The Company and all of Nexstar Broadcasting and Mission’s future domestic restricted subsidiaries will guarantee the notes on a senior secured basis, Nexstar said.
Nexstar Broadcasting and Mission intend to use the net proceeds of the offering, together with borrowings under each of Nexstar Broadcasting and Mission’s amended senior secured credit facilities and cash on hand, to repurchase Nexstar Broadcasting’s outstanding 13% Senior Subordinated Payment-in-Kind Notes due 2014, to refinance Nexstar Broadcasting and Mission’s existing senior secured credit facilities, pay related fees and expenses and – if anything is left after all that – “for general corporate purposes.”
At the same time, Nexstar Broadcasting and Mission announced that they have also proposed an amendment to each of their senior secured credit facilities, which, among other items, would extend the maturity of their existing facilities, adjust the existing leverage covenants, permit the incurrence of the additional indebtedness and grant the second-priority senior secured lien securing the notes. Under the proposed amendments, Nexstar and Mission have proposed to reduce their revolving commitments to an aggregate $75.0 million allocated between each credit agreement and refinancing the Term Loan B facilities in aggregate amount of $100 million.
The proposed amendment to the senior credit facilities will be effective upon completion of the note offering. The $325 million of new notes will be offered only to qualified institutional investors.
Nexstar Broadcasting Group currently owns, operates, programs or provides sales and other services to 62 television stations in 34 markets. Its stations reach approximately 13 million viewers or approximately 11.5% of all US television households.