Nexstar exchange offer for 7% notes oversubscribed at early deadline

By Angela McDaniels

Tacoma, Wash., March 11 - Nexstar Broadcasting, Inc. had received tenders for about $186.76 million of its $191.51 million 7% senior subordinated notes due 2014 as of 5 p.m. ET on March 10, according to a company news release.

An exchange offer for the notes began on Feb. 27 and will expire at midnight ET on March 26. March 10 was the early tender deadline.

The company is offering to exchange up to $143.6 million of the notes for up to $143.6 million of its 7% senior subordinated pay-in-kind notes due 2014 and cash.

Nexstar said that because the amount tendered so far exceeds the cap, the principal amount of notes tendered in excess of $143.6 million is subject to reduction on a pro rata basis among all tendering holders.

The total payment includes an early participation fee of $30.00 per $1,000 principal amount of notes tendered by the early tender deadline, which is in addition to the $93.10 per $1,000 principal amount of notes tendered by the expiration date.

Initially, interest on the new notes will be payable in kind. It will accrue at an annual rate of 0.5% so that as of Jan. 15, 2011, the total principal amount of new notes received in connection with the exchange offer will equal $1,000. Then from Jan. 15, 2011 onward the new notes will accrue cash interest at a rate of 7% per year.

The offer is subject to conditions that include a minimum tender condition of at least $114.9 million of the old notes.

Nexstar is a subsidiary of Irving, Texas-based television station operator Nexstar Broadcasting Group, Inc.

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