Hubbard Broadcasting upsizes, reduces first- and second-lien pricing

By Sara Rosenberg

New York, April 6 - Hubbard Broadcasting Inc. upsized its six-year first-lien term loan to $270 million from $255 million and reduced pricing to Libor plus 375 basis points from Libor plus 400 bps to 425 bps, according to a market source.

The 1.5% Libor floor and original issue discount of 99½ on the first-lien term loan were left unchanged, but 101 soft call protection for one year was added, the source said.

Meanwhile, the $140 million seven-year second-lien term loan, size unchanged, saw pricing flex down to Libor plus 725 bps from talk of Libor plus 750 bps to 775 bps, the floor tighten to 1.5% from 1.75% Libor floor and the original issue discount move to 99 from 981/2, the source continued.

The second-lien loan still has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's now $420 million credit facility, up from $405 million, still includes a $10 million five-year revolver.

Morgan Stanley & Co. Inc. and Goldman Sachs & Co. are the lead banks on the deal, with Morgan Stanley the left lead.

Proceeds will be used to help fund the acquisition of 17 radio stations from Bonneville International Corp.

The acquisition, which is valued at about $505 million, is expected to be completed upon FCC approval and other customary conditions.

Hubbard Broadcasting is a St. Paul, Minn.-based television and radio broadcasting company.

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