Scripps to refinance revolver and term loans, announces new transactions
The E.W. Scripps Company recently announced a series of transactions aimed at refinancing its existing term loans and credit facilities. These strategic moves will provide financial flexibility for the company and support its ongoing strategic initiatives, ensuring it can continue to make progress.
One key aspect of these transactions involves the exchange and repayment of existing term loans. Initial consenting lenders holding tranche B-2 term loans due in May 2026 will exchange certain portions of their loans for new B-2 term loans with a due date in June 2028. Similarly, initial consenting lenders with tranche B-3 term loans due in June 2028 will exchange their loans for a combination of new B-2 and B-3 term loans with a due date in November 2029. This exchange or repayment will help streamline Scripps’ outstanding debt obligations and improve its financial position.
In addition to the term loan transactions, Scripps has secured committed financing to support the successful execution of these initiatives. The company has obtained commitment letters from new lenders for a $450 million accounts receivable securitization facility. This facility will partially repay existing term loans and provide liquidity for ongoing operations. The commitment letters also include provisions for new B-2 term loans to be offered to certain initial consenting lenders, further strengthening the company’s financial position.
To enhance liquidity and support its future endeavors, Scripps has also committed to entering into a new revolving credit facility. This new facility, valued at $208 million, will extend through July 2027 and replace a portion of the company’s existing revolving credit facility. The remaining amount of the existing revolving credit facility will remain available for future draws, ensuring Scripps has continued access to working capital.
Following these transactions, Scripps plans to offer existing term loan holders the opportunity to exchange their loans for new B-2 or B-3 term loans. Once completed, no existing B-2 term loans will remain outstanding, and any existing B-3 term loans will be subordinated to the new loans and credit facilities. These moves are expected to be finalized by April, enabling Scripps to move forward with confidence.
Scripps’ Chief Financial Officer, Jason Combs, expressed optimism about the refinancing efforts, stating that they will help transform the company’s balance sheet and support key strategic initiatives. He emphasized the importance of managing debt while positioning the company for future growth and success.
As the company moves ahead with these transactions, it will file a Form 8-K with the Securities and Exchange Commission, providing further details on the terms of the deals. With legal counsel and financial advisors guiding the process, Scripps is on track to complete these refinancing efforts and strengthen its financial position for the future.
