First Union at a bank meeting last Thursday launched syndication of a $180 million senior secured credit on behalf of Quincy, Mass.-based Quincy Newspapers.Firstar Bank and Key Corporate Capital have committed to the facility as syndication and documentation agents, respectively. First Union officials said the facility comprises an $80 million revolver and a $100 million term loan. Pricing is expected at LIBOR plus 21 2% and leverage is under 4.5x. Ralph Oakley, v.p. of Quincy, confirmed the structure of the deal and the arrangers, but would not elaborate further on any details surrounding the facility.
The facility will fund Quincy's acquisition of five television stations in Wisconsin from Northern Communications Acquisition Corp. Quincy is a diversified media company that participates in television, newspaper, and radio operations primarily in the Midwest.