Syndication of the $1.1 billion recapitalization of Freedom Communications is set to launch this week. J.P. Morgan, Morgan Stanley, Wachovia Securities, Deutsche Bank and UBS are leading the recap that will enable some family shareholders to remain in the business while others cash out.
Blackstone Communications Partners, a fund of The Blackstone Group, and Providence Equity Partners are investing in the company (LMW, 10/20).
The facility comprises a $100 million revolver, a $250 million "A" loan and $750 million "B" loan. Price talk on the "B" loan and pro rata is LIBOR Plus 21/4%. Freedom owns about 24 daily newspapers, 37 weekly newspapers and eight radio stations. A Blackstone spokesman andDavid Kuykendall, Freedom's cfo, did not return calls by press time. A Providence spokeswoman could not provide comment by press time.