The former Gannett television group now known as TEGNA has been a standalone entity for less than two weeks and continues to move quickly, this time setting up a massive revolving credit facility and adding a term loan as well.
Moody’s Investors Service analyst Carl Salas said the moves were credit neutral.
The revolver is to the tune of $1.32 billion, and the term loan is worth $200 million.
“We are very pleased with the terms of our revolving credit facility and term loan, both of which reflect the financial strength and projected growth trajectory of TEGNA”
“We are very pleased with the terms of our revolving credit facility and term loan, both of which reflect the financial strength and projected growth trajectory of TEGNA,” said Gracia Martore, president and CEO, TEGNA. “We are well-positioned, and have more than sufficient financial flexibility, to continue to invest in innovation, high-impact strategic acquisitions and other opportunities for growth that complement and enhance the operational performance of the company, while continuing to deliver value to our shareholders.”
The company’s Corporate Family Rating is set at Ba1 by Moody’s.
Salas said the company did well to get out from under the ratings overhang with which it had been saddled by the Gannett print assets.
However, it faces the debt associated with the 2013 acquisition of Belo Corporation and the 2014 acquisition of outstanding shares in Cars.com.
On the plus side, the company stands to benefit greatly from record political spending in 2016.
The company is expected to close out 2015 with a leverage level of about 4x, but could knock that all the way down to 3x by the end of 2016, noted Salas.
Despite all the potential, Moody’s says the company’s outlook is negative.
