E.W. Scripps readies launch of $250 million term loan B for Tuesday

By Sara Rosenberg

New York, Aug. 3 – E.W. Scripps Co. is scheduled to hold a lender call at 1 p.m. ET on Tuesday to launch a $250 million term loan B (BB+), according to a market source.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are the leads on the deal.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at 1 p.m. ET on Aug. 18.

Proceeds will be used to help fund the acquisition of Katz broadcasting networks for $302 million or a net purchase price of $292 million after accounting for its 5% ownership position in a portion of the business.

Other funds for the transaction will come from about $50 million of cash on hand.

Closing is expected on Oct. 2, subject to Hart-Scott-Rodino clearance and customary conditions.

Upon closing, leverage is expected to be about 3 times on a pro forma 2017/2018 blended basis. By year-end 2018, net leverage is expected to be about 2.5 times.

E.W. Scripps is a Cincinnati-based broadcasting company.

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