Media General bid up as amendment pulled; Cablevision, Physio-Control price talk surfaces

By Sara Rosenberg

New York, Sept. 21 – Media General Inc.’s term loan was bid higher in the secondary market on Monday following news that the company pulled its proposed opportunistic amendment request that would have provided more flexibility regarding the debt structure for the Meredith Corp. acquisition.

Over in the primary market, Cablevision Systems Corp. and Physio-Control International Inc. launched their loan transactions, and FullBeauty Brands, Coty Inc./Galleria Co. and Raycom TV are getting ready to bring new deals to market this week.

Media General’s term loan bid strengthened in trading on Monday after the company cancelled plans for an amendment to its existing credit facility, according to a trader.

The term loan was quoted at 99 1/8 bid, 99 3/8 offered versus 99 bid, 99½ offered previously, the trader said.

The pulled amendment would have revised the net first-lien debt incurrence limit to 5.25 times at closing of the acquisition from 4 times, the net secured debt incurrence limit to 5.25 times from 4.5 times and the unsecured debt incurrence limit to 6 times from 5.5 times. This would have given the Media General room to use all senior debt for its acquisition of Meredith.

However, the plan was, and still is, to use a combination of incremental senior secured term loan B debt and bonds for the acquisition, which is why the amendment was simply an opportunistic transaction, a source explained.

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