Tegna cancels agreement to be acquired by Standard General

By Sara Rosenberg

New York, May 22 – Tegna Inc. terminated on Monday its agreement to be acquired by Standard General LP, according to an 8-K filed with the Securities and Exchange Commission.

The company had a commitment for $4 billion of senior secured credit facilities, comprised of a $500 million revolver and a $3.5 billion term loan, and $4.211 billion of bridge loans, comprised of a $1.496 billion senior secured bridge loan and a $2.715 billion senior unsecured bridge loan, to help fund its purchase by Standard General.

RBC Capital Markets, BofA Securities Inc., Goldman Sachs Bank USA, Truist Securities Inc., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Jefferies LLC, Mizuho, TD Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., MUFG, Citizens Bank and SMBC had provided the debt commitment.

Under the terminated agreement, Tegna was going to be bought for $24.00 per share in cash. The transaction had an equity value of about $5.4 billion and an enterprise value of around $8.6 billion, including the assumption of debt.

The merger agreement provided Tegna with a right to terminate the agreement if the Federal Communications Commission issued a Hearing Designation Order with respect to certain transactions contemplated by the merger.

Tegna is entitled to receive a termination fee of $136 million from Standard General.

Tegna is a Tysons, Va.-based media company.

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