By Paul A. Harris
Portland, Ore., Dec. 15 – E.W. Scripps Co. priced a downsized $1.05 billion amount of high-yield notes in two tranches on Tuesday, according to market sources.
The deal included a downsized $550 million tranche of senior secured notes due Jan. 15, 2029 (Ba3/BB-/BB) that priced at par to yield 3 7/8%. The tranche size decreased from $700 million. The yield printed at the tight end of yield talk in the 4% area. Initial talk in the low 4% area.
The deal also included a $500 million tranche of senior unsecured notes due Jan. 15, 2031 (Caa1/CCC+/B-) that priced at par to yield 5 3/8%, tight to talk in the 5˝% area and inside of initial talk in the high 5% area.
Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were BofA Securities Inc., Truist Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
The notes were sold via Scripps Escrow II, Inc.
The Cincinnati-based broadcasting and digital media company plans to use the proceeds from the Rule 144A and Regulation S for life deal to finance its acquisition of ION Media, a West Palm Beach, Fla.-based television broadcast network.
With the shift of $150 million of proceeds to the term loan from the bonds, the overall amount of bond issuance decreased to $1.05 billion from $1.2 billion, while the loan size increased to $800 million from $650 million.
| Issuer: | Scripps Escrow II, Inc.
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| Amount: | $1.05 billion, decreased from $1.2 billion
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| Left lead bookrunner: | Morgan Stanley & Co. LLC
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| Joint bookrunners: | BofA Securities Inc., Truist Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
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| Co-managers: | Fifth Third Securities Inc. and MUFG
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| Trade date: | Dec. 15
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| Settlement date: | Dec. 30
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| Distribution: | Rule 144A and Regulation S for life
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| Marketing: | Roadshow
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|
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| Senior secured notes
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| Amount: | $550 million, decreased from $700 million
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| Maturity: | Jan. 15, 2029
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| Coupon: | 3 7/8%
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| Price: | Par
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| Yield: | 3 7/8%
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| Spread: | 315 bps
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| First call: | Jan. 15, 2024 at 101.938
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Fitch: BB
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| Price talk: | 4% area
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| Senior unsecured notes
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| Amount: | $500 million
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| Maturity: | Jan. 15, 2031
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| Coupon: | 5 3/8%
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| Price: | Par
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| Yield: | 5 3/8%
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| Spread: | 446 bps
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| First call: | Jan. 15, 2026 at 102.688
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| Ratings: | Moody’s: Caa1
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| S&P: CCC+
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| Fitch: B-
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| Price talk: | 5˝% area
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