Now that Nexstar Media Group effectively owns TEGNA, which saw its stock conclude its trading at a $20.03 valuation and is being converted to “NXST” shares, the company founded 30 years ago by Perry Sook is moving forward with its intent to offer two rounds of senior secured notes to bondholders.
The total sought by Nexstar is above $5 billion, and is a call to action to help fund its $6.2 billion purchase of the company formerly known as Gannett.
The first offer is $3.39 billion in aggregate principal amount of new senior secured notes due 2033. The second offer is for $1.725 billion in aggregate principal amount of new senior notes — unsecured — due 2034.
Each series of notes are being launched in a private offering that is exempt from registration under the Securities Act of 1933.
Nexstar intends to use the proceeds from the proposed offerings along with cash on hand to repay borrowings outstanding under its bridge credit facilities incurred in connection with closing the TEGNA acquisition.
Nexstar also seeks to use the funds to repay loans under its new senior secured credit facilities and to fund the acquisition of TEGNA’s 5% senior notes due 2029, which was previously reported. Furthermore, Nexstar wishes to use the funds to fund the redemption of the company’s 5.625% senior notes due 2027.
As the 11am Eastern hour began, Nexstar’s Nasdaq-traded shares were up by 3.1% to $230.02 in a session that briefly saw shares spike to $241.09 before quickly receding in value.
