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Journal Communications enters amended, restated $350 million facility
By Jennifer Chiou
New York, Dec. 7 - Journal Communications Inc. entered into an amended and restated credit agreement on Dec. 5 with U.S. Bank NA as administrative agent. The facility provides for $350 million of commitments, according to an 8-K filed with the Securities and Exchange Commission on Friday.
Sun Trust Bank and Bank of America, NA acted as co-syndication agents.
The credit agreement includes a $150 million term loan and a $200 million revolving loan. Both mature on Dec. 5, 2017.
As of Dec. 5, there was $78.715 million outstanding under the revolver and $150 million drawn under the term loans.
Proceeds will be used for the acquisition of NewsChannel 5 Network, LLC and general corporate purposes.
On Dec. 6, subsidiary Journal Broadcast Group, Inc. completed the acquisition of NewsChannel 5 from a subsidiary of Landmark Media Enterprises, LLC. The purchase price was $215 million plus a preliminary working capital adjustment of $5 million, the filing said.
At the company's option, the commitments under the credit agreement may be increased from time to time to up to $450 million.
Borrowings bear interest at Libor plus 150 basis points to 250 bps, depending on the company's net debt ratio. The initial spread is 225 bps.
The company must keep a consolidated funded debt ratio of not greater than 3.75 to 1 as of the end of each fiscal quarter. The consolidated funded debt ratio may be increased to 4.25 to 1 for a temporary period at Journal Communications' option, provided certain conditions are met to consummate permitted acquisitions.
Journal Communications also has to keep a minimum interest coverage ratio of no less than 3 to 1 as of the end of each fiscal quarter.
Journal Communications is a Milwaukee-based diversified media company with operations in radio and television broadcasting, publishing and interactive media.
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