Nexstar Media Group secures new financing for credit facilities.

edit spread reduction compared to the rate on the prior credit facilities. The revolving credit facilities and Term Loan A priced with an upfront fee of 0.125% or 0.25% for rolled or new commitments. The Term Loan B bears interest at SOFR plus 250 basis points per annum, representing an 11 basis point credit spread reduction for 1-month SOFR compared to the rate on the prior Term Loan B. The Term Loan B priced with an original issue discount of 1.00%.

By refinancing these credit facilities in full, Nexstar Media Group has significantly optimized its financial position. The company is now equipped with the following new credit facilities: a $750 million Nexstar Revolving Credit Facility due in 2030, a $75 million Mission Revolving Credit Facility also due in 2030, a $1,905 million Nexstar Term Loan A due in 2030, and a $1,300 million Nexstar Term Loan B due in 2032. These credit facilities offer reduced interest rates, with the revolving credit facilities and Term Loan A bearing interest at the Secured Overnight Financing Rate (SOFR) plus 150 basis points per annum. This represents a 10 basis point reduction compared to the rates on previous credit facilities.

Moreover, the refinancing has resulted in improved credit spread reductions, making the new credit facilities more advantageous for Nexstar Media Group. Notably, the Term Loan B now bears interest at SOFR plus 250 basis points per annum, which is an 11 basis point credit spread reduction for 1-month SOFR compared to the prior Term Loan B rate. The Term Loan B is also priced with an original issue discount of 1.00%, further benefitting the company’s financial structure.

With the completion of these refinancings and the added capacity of the new credit facilities, Nexstar Media Group has successfully enhanced its balance sheet and capital structure. This strategic move positions the company for continued financial flexibility and stability. The company has also utilized cash on hand in conjunction with the net proceeds of the new credit facilities to fully refinance Nexstar’s previous revolving credit facility due in 2027, Mission’s revolving credit facility due in 2027, Nexstar’s Term Loan A due in 2027, and Nexstar’s Term Loan B due in 2026.

In conclusion, the successful refinancing of these credit facilities is a testament to Nexstar Media Group’s commitment to strengthening its financial foundation. By securing more favorable interest rates and improved credit spread reductions, the company has demonstrated prudent financial management and proactive strategic planning. This refinancing initiative will undoubtedly contribute to Nexstar Media Group’s continued success and growth in the future.