Fox Acquisition firms $237 million add-on loan at Libor plus 450 bps

By Sara Rosenberg

New York, March 5 - Fox Acquisition Sub LLC set pricing on its $237 million add-on term loan (B2/B) due July 2017 at Libor plus 450 basis points, the tight end of the Libor plus 450 bps to 475 bps talk, according to a market source.

Also, the Libor floor was cut to 1% from 1.25%, and the original issue discount firmed at 993/4, compared to earlier talk of 99½ to 993/4, the source said.

The add-on has 101 soft call protection through September 2013, which is the same as the existing term loan.

Pricing on the existing term loan is Libor plus 450 bps with a 1% Libor floor.

Deutsche Bank Securities Inc. is the bookrunner on the deal.

Proceeds will be used to fund a dividend to Oakhill Capital.

In addition, the company is seeking the amendment to allow for the new debt and the dividend, to provide for a pro forma accordion of $125 million subject to 5.5 times secured leverage and 50 bps MFN and to allow for unlimited asset sales subject to mandatory prepayments.

Lenders are being offered a 10 bps consent fee.

Closing is targeted for the week of March 11.

Fox is a Fort Wright, Ky.-based owner and operator of television stations.

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