E.W. Scripps ups term B to $765 million, flexes to Libor plus 275 bps

By Sara Rosenberg

New York, April 3 – E.W. Scripps Co. upsized its seven-year covenant-lite incremental term loan B (Ba3/BB) to $765 million from $525 million and trimmed pricing to Libor plus 275 basis points from talk in the range of Libor plus 300 bps to 325 bps, according to a market source.

Additionally, the original issue discount on the term loan B was revised to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

Recommitments are due at 3 p.m. ET on Thursday, the source continued.

Proceeds will be used to fund the $521 million acquisition of 15 television stations in 10 markets from Cordillera Communications.

Due to the term loan upsizing, the company will need less funds for its pending acquisition of eight television stations in seven markets from the Nexstar Media Group Inc.-Tribune Media merger divestitures for $580 million, the source added.

Late last month, the company said in an 8-K filed with the Securities and Exchange Commission that it had a commitment for a $625 million term loan B from Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC for the Nexstar-Tribune transaction.

E.W. Scripps is a Cincinnati-based broadcasting and digital media company.

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