Along with announcing on Tuesday that it was refinancing its bank credit facility, Belo Corporation announced plans to offer $250-275 million in senior notes due 2016. The bond offering is subject to the completion of an amendment to its bank credit facility, which is expected to allow for additional capacity under the credit facility’s leverage and interest coverage covenants and also to extend the term of a portion of the commitments under the facility.
Belo said it intends to use the net proceeds from the bond offering, which is expected to close by the end of November, to reduce the outstanding balance and commitments under its current $550 million credit facility. J.P. Morgan Securities Inc. is acting as lead book-running manager for the offering.
