Nexstar Media Group Refinances Senior Secured Term Loans and Revolving Credit Facility
July 10 2017 - 4:05PM
Business Wire
Refinancing Reduces Annual Interest Expense
by Approximately $15 Million
Nexstar Media Group, Inc. (Nasdaq:NXST) announced today it
received commitments for a $3.1 billion refinancing of its
outstanding Senior Secured Term Loan facilities, including the
balance of the $2.75 billion Senior Secured Term Loan B due January
2024, the $51.3 million Senior Secured Term Loan A due June 2018
and the $293.9 million Senior Secured Term Loan A due January 2022.
Nexstar will also be refinancing its $175.0 million Senior Secured
revolving credit facility under which $3.0 million was drawn as of
March 31, 2017. The Company expects the refinancing transaction to
close on or about July 18, 2017, which will lower its annual
interest expense by approximately $15 million and increase free
cash flow by approximately $9 million on an annualized basis.
The new $2.125 billion Term Loan B facility was issued at par
and bears interest at a rate of LIBOR plus 2.50%, while its
maturity date remains unchanged. These new terms represent a 50
basis point interest rate reduction compared to the Company’s prior
Term Loan B facility. The new $800 million Term Loan A facility was
issued at par and initially bears interest at a rate of LIBOR plus
2.00%, with periodic adjustments thereafter according to a leverage
based grid. The maturity on the balance of the $51.3 million
tranche is unchanged and the remaining portion of the Term Loan A
will have a new 5 year maturity. The Company’s new Senior Secured
revolving credit facility has a total capacity of $175 million, of
which $3.0 million is currently drawn, and initially bears interest
at a rate of LIBOR plus 2.00%, with periodic adjustments thereafter
according to a leverage based grid. The Company’s previous Term
Loan A and revolving credit facility were priced at a rate of LIBOR
plus 2.50%, while the interest rate for the new Term Loan A and
revolving credit facilities is LIBOR plus 2.00%.
Perry A. Sook, Chairman, President and Chief Executive Officer
of Nexstar Media Group, Inc. commented, “The refinancing of our
Senior Secured Term Loan facilities and revolving credit facility
further underscores Nexstar’s ongoing focus on actively managing
our capital structure to drive free cash flow growth and provide
the financial flexibility to support our near- and long-term growth
and return of capital objectives. We thank our lenders for their
continued support and believe this refinancing will enhance
long-term shareholder value as it reduces our annual cash interest
expense thus increasing our significant and growing free cash flow.
Furthermore, we continue to expect Nexstar’s net leverage, absent
additional strategic activity, to be in the high 4x range at the
end of 2017 before declining to the mid 3x range by the end of
2018.”
About Nexstar Media Group, Inc.
Nexstar Media Group is a leading diversified media company that
leverages localism to bring new services and value to consumers and
advertisers through its traditional media, digital and mobile media
platforms. Nexstar owns, operates, programs or provides sales and
other services to 170 television stations and related digital
multicast signals reaching 100 markets or nearly 39% of all U.S.
television households. Nexstar’s portfolio includes primary
affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW. Nexstar’s
community portal websites offer additional hyper-local content and
verticals for consumers and advertisers, allowing audiences to
choose where, when and how they access content while creating new
revenue opportunities. For more information please visit
www.nexstar.tv.
Forward-Looking Statements
This communication includes forward-looking statements. We have
based these forward-looking statements on our current expectations
and projections about future events. Forward-looking statements
include information preceded by, followed by, or that includes the
words "guidance," "believes," "expects," "anticipates," "could," or
similar expressions. For these statements, Nexstar claims the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements contained in this communication,
concerning, among other things, future financial performance,
including changes in net revenue, cash flow and operating expenses,
involve risks and uncertainties, and are subject to change based on
various important factors, including the impact of changes in
national and regional economies, the ability to service and
refinance our outstanding debt, successful integration of acquired
television stations and digital businesses (including achievement
of synergies and cost reductions), pricing fluctuations in local
and national advertising, future regulatory actions and conditions
in the television stations' operating areas, competition from
others in the broadcast television markets, volatility in
programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments
and major world news events. Nexstar undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. In light of
these risks, uncertainties and assumptions, the forward-looking
events discussed in this communication might not occur. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. For more details on
factors that could affect these expectations, please see Nexstar’s
other filings with the SEC.
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version on businesswire.com: http://www.businesswire.com/news/home/20170710006151/en/
Nexstar Media Group, Inc.Thomas E. CarterChief Financial
Officer972/373-8800orJCIRJoseph Jaffoni, Jennifer
Neuman212/835-8500 or nxst@jcir.com
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