NexstarBroadcasting Group Inc.'s unit Nexstar Broadcasting Inc. priced a $2.75 billion termloan B facility to finance its proposed $4.6 billion of
The facility will mature in seven years, and will be pricedequivalent to 99.75% of its face value. The interest rate of the facility will beLIBOR plus 3.00% with a 0.0% LIBOR floor. The closing of the facility issubject to customary closing conditions, as well as the closing of the plannedMedia General acquisition, the company said Sept. 27.
Nexstar in January agreed to buy all outstanding shares of Media Generalfor $10.55 per share in cash and 0.1249 of a share of Nexstar class A commonstock for each Media General share. The deal recently received from theU.S. Department of Justice. The proposed acquisition now needs FCC approval aswell as certain other customary closing matters.
The company plans to use the net proceeds from the term loanB facility, along with the previously issued $900 million in 5.625% new senior notes due 2024and cash proceeds from divesture of certain assets and issuance of new commonstock, to fund its planned acquisition of Media General, to repay or make achange of control offer for existing Media General debts, and to pay other feesand expenses related to the planned acquisition and related refinancing.Nexstar also intends to use the proceeds to repay its existing creditfacilities.