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Media General sets talk on roughly $1 billion of bank debt with launch
By Sara Rosenberg
New York, Oct. 24 – Media General Inc. released price talk on its $1,015,000,000 in new bank debt in connection with its call on Friday, according to a market source.
The incremental $90 million revolver and $600 million five-year term loan A are talked at Libor plus 250 basis points with a 50 bps upfront fee, and the $325 million term loan B due July 2020 is talked at Libor plus 325 bps with a 1% Libor floor and an original issue discount of 98˝, the source said.
Also, the term loan B has 101 soft call protection for six months.
Included in the loans is a total leverage covenant.
Commitments are due on Nov. 5, the source added.
RBC Capital Markets LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank NA and Capital One are the joint lead arrangers on the deal.
Proceeds will be used to support the company’s merger with LIN Media LLC.
Under the agreement, shareholders of LIN Media will receive $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN Media shareholders is $763 million. Media General shareholders will receive one share of the new holding company for each share of Media General that they own upon closing.
The new loans and a planned $300 million senior unsecured notes offering will fund the cash payment to LIN Shareholders and refinance certain LIN debt.
Closing is subject to customary closing conditions, including the approval of the Federal Communications Commission, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain third-party consents.
Media General is a Richmond, Va.-based local television broadcasting and digital media company. LIN Media is an Austin, Texas-based local multimedia company.
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