Nexstar Prepays $250,000,000 of its Outstanding Term A Loans from Cash on Hand
Nexstar Media Group, Inc. announced today that Nexstar Broadcasting, Inc. (“Nexstar”), a wholly-owned subsidiary, and Mission Broadcasting, Inc. (“Mission”), a variable interest entity of Nexstar, received new revolving credit commitments in an aggregate principal amount of $280,000,000 (the “2020 Revolving Credit Facility”) under Nexstar’s and Mission’s respective existing credit agreements. $250,000,000 of the 2020 Revolving Credit Facility is allocated to Mission and $30,000,000 of the 2020 Revolving Credit Facility is allocated to Nexstar. The 2020 Revolving Credit Facility is in addition to the $166,000,000 revolving credit facility under Nexstar’s and Mission’s existing credit agreements.
The 2020 Revolving Credit Facility bears interest at the LIBOR rate, with a margin in the range of 1.75% – 2.50%, determined based on a leverage-based grid. The remaining terms of the 2020 Revolving Credit Facility are substantially the same as Nexstar’s and Mission’s existing $166,000,000 revolving credit facility.
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Concurrent with the close of the 2020 Revolving Credit Facility, Mission borrowed $225,000,000 under such facility and used the proceeds to prepay Mission’s outstanding term B loans in full. Nexstar also made a voluntary prepayment of $250,000,000 of its outstanding term A loans with cash on hand.
Perry A. Sook, Chairman, President and Chief Executive Officer of Nexstar Media Group, Inc. commented, “The expansion and re-pricing of our revolving credit facility again highlight Nexstar’s focus on actively managing our capital structure and cost of capital to drive free cash flow growth while affording us the financial flexibility to act on other opportunities to enhance shareholder value.
“In addition, we continue to allocate cash from operations and exceptionally strong political advertising to make meaningful reductions of our debt. The active management of our capital structure combined with strong free cash flow generation positions Nexstar to pursue a range of actions to enhance shareholder returns on both a scheduled and opportunistic basis, including the payment of quarterly cash dividends, share repurchases through our recently expanded share repurchase authorization, further leverage reduction and select accretive acquisitions. We thank our lenders for their continued support and continue to expect Nexstar’s net leverage to decline to approximately 4x by year-end.”
