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E.W. Scripps launches amendment to allow for incremental loan
By Sara Rosenberg
New York, Nov. 13 – E.W. Scripps Co. was scheduled to hold a lender call at 1 p.m. ET on Tuesday to launch an amendment to its credit facilities to permit the incurrence of an incremental term loan B on customary limited condition acquisition terms and permit an acquisition, according to a market source.
In addition, the amendment would revise the consolidated EBITDA definition to increase the synergies cap to 15% achieved over 12 months, and add customary limited condition acquisition provisions, customary permitted escrow debt terms and changes in the LSTA model provisions, the source said.
The company announced late last month that it plans on getting an incremental term loan to fund the $521 million acquisition of 15 television stations in 10 markets from Cordillera Communications.
The incremental senior secured term loan B is expected to be sized at $525 million and have a seven-year maturity.
Total leverage is anticipated to be around 4.8 times at closing, including estimated synergies.
Wells Fargo Securities LLC is the lead on the amendment and would be the lead on the incremental term loan.
The existing credit facilities consist of a $125 million revolver due April 27, 2022 and a $297 million covenant-light term loan B due Oct. 2, 2024.
The amendment needs 50% across the revolver and term loan B tranches for approval.
Lenders are being offered a 12.5 bps consent fee, the source added.
Consents are due at noon ET on Friday.
Closing on the acquisition is anticipated to occur in the first quarter of 2019.
E.W. Scripps is Cincinnati-based broadcasting and digital media company.
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