Fox Acquisition to launch $237 million add-on, amendment on Thursday

By Sara Rosenberg

New York, Feb. 26 - Fox Acquisition Sub LLC will hold a call at 11 a.m. ET on Thursday to launch a $237 million add-on term loan due July 2017 and amendment to its existing credit facility, according to a market source.

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

The add-on is talked at Libor plus 450 basis points to 475 bps with a 1.25% Libor floor and an original issue discount 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.

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

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, the source continued.

Lenders are being offered a 10 bps consent fee and will have their term loan spread and floor reset to match the clearing levels on the add-on.

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

With the add-on, the company's term loan will total $1 billion.

Commitments are due on March 6.

Closing is targeted for the week of March 11, the source added.

Ratings are expected in the mid-B area.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.