Investors piled into Nexstar Broadcasting Group's $175 million "B" piece, led byBank of America and Bear Stearns, oversubscribing the tranche a day after its Jan. 14 bank meeting. Robert Thomson, cfo, said the tranche was oversubscribed by three times. Pricing is LIBOR plus 31/ 2% on the institutional piece, while the $80 million revolver priced at LIBOR plus 31/ 4%. The lead banks and Thomson are uncertain if they will increase the capacity or flex pricing on the tranche. Leverage multiples out of the gate were six times, according to 2002 figures, a banker noted. Thomson referred further questions to a B of A banker who declined to comment. A Bear Stearns official also declined comment.
The $255 million credit backs an undisclosed acquisition for Nexstar, most likely in order to purchase more television stations, said another banker. Irving, Texas-based Nexstar is a television broadcasting company focused exclusively on the acquisition, development and operation of medium-sized markets in the U.S.
B of A currently leads a $182 million line for Nexstar, under the Nexstar Finance arm. Pricing on that credit is LIBOR plus 31/ 4% on the $75 million "B" loan and LIBOR plus 31/ 2% on the pro rata, which includes a $57 million revolver and a $50 million "A" piece.