| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers T > Headlines for Tenders 2008 > News item |
Nexstar Broadcasting to call $46.9 million of 11 3/8% discount notes
By Angela McDaniels
Tacoma, Wash., March 11 - Nexstar Broadcasting, Inc. must redeem $46.9 million of Nexstar Finance Holdings LLC's $130 million 11 3/8% senior discount notes due 2013 on April 1, according to a 10-K filing with the Securities and Exchange Commission.
The redemption is needed to ensure the notes will not be "applicable high yield discount obligations" as defined by the Internal Revenue Code.
Nexstar expects to fund the redemption with cash generated from operations and from borrowings under its senior secured credit facility.
The company noted that as of June 30, the remaining $83.1 million of 11 3/8% notes will be included as outstanding debt in the calculation of its total leverage ratio. Given this impact, Nexstar is pursuing plans to enhance its ability to comply with the covenant such as making changes to some of its vendor payment terms and repositioning $13 million of capital expenditures originally planned for the first six months of 2008 into the last six months of 2008.
The planned redemption was reported in Mission Broadcasting, Inc.'s 10-K report for the year ended Dec. 31, which was filed with the SEC on Tuesday. Mission has shared services agreements and joint services agreements with Nexstar for several television stations that result in Nexstar receiving substantially all of Mission's available cash generated by the stations.
In the filing, Mission said its bank credit facility provides for default in the event Nexstar does not comply with all covenants contained in its credit agreement.
Nexstar, based in Irving, Texas, owns, operates, programs or provides sales and other services to 49 television stations in 29 markets.
© 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.