Tegna to price $1 billion eight-year notes in Tuesday drive-by; initial talk high 4% area

By Paul A. Harris

Portland, Ore., Jan. 7 – Tegna Inc. plans to price $1 billion of senior notes due March 2028 (existing ratings Ba3/BB) in a Tuesday drive-by transaction trailing a mid-morning conference call with investors, according to market sources.

Initial talk has the Rule 144A and Regulation S for life deal coming to yield in the high 4% area, a bond trader said.

Citigroup Global Markets Inc. is the lead bookrunner. J.P. Morgan Securities LLC, Barclays, RBC Capital Markets LLC, MUFG, Mizuho Securities USA Inc., Fifth Third Securities Inc., U.S. Bancorp Investments Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Citizens Capital Markets Inc. and SMBC Nikko Securities America Inc. are the joint bookrunners.

Capital One Securities Inc. and TD Securities (USA) LLC are the co-managers.

The eight-year notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback at par plus the coupon.

The Tysons, Va.-based broadcast, digital media and marketing services company plans to use the proceeds to refinance $310 million of its remaining 5 1/8% senior notes due 2020 and $650 million 6 3/8% senior notes due 2023, with remaining proceeds to repay debt under its senior unsecured revolver.

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