Nexstar reworking some debt


With LIBOR (London Interbank Offered Rate) so low, Nexstar Broadcasting Company has been paying 5% interest on its senior debt, so you can understand why the company would be interested in buying back its 11 3/8% Senior Discount Notes. Thus, it is looking to do some balance sheet reworking.

Nexstar announced that it is seeking to raise $50 million from lenders to increase its existing Term Loan B credit facility to $149 million. Once that it accomplished, Nexstar plans to redeem all of the 11 3/8% Senior Discount Notes due 2013 that remain outstanding – some $33.4 million worth.

Mission Broadcasting, whose stations receive services from Nexstar in a series of virtual duopolies, is also a borrower under the Term Loan B credit facility.

In connection with the proposed Term Loan B offering, Nexstar and Mission have proposed an amendment to each of their senior secured credit facilities to do some more balance sheet reworking. The amendments would, among other things, allow the TV companies to issue Second Lien Notes or Senior Unsecured Notes and use the proceeds to refinance their existing 7.0% Senior Subordinated Notes due 2014, while still preserving incremental term loan capacity of $100 million.