GE Capital,SunTrust Bank and Comerica Bank are shopping a $150 million bank facility for 21st Century Newspapers, a Michigan-based publisher of newspapers and publications. The credit backs the acquisition of the newspaper assets of Brill Media and consists of a $30 million revolver, a $45 million "A" term loan and a $75 million "B" piece. Pricing across the board is LIBOR plus 4%, one banker said, noting that Van Kampen Investments has already signed onto the deal. Officials at the banks either declined to comment or did not return calls. A spokeswoman for 21st Century did not return calls.
The newspaper assets of Brill were acquired through an auction held under Chapter 11 proceedings. The strategy underpinning the acquisition is to take advantage of clustering opportunities within the suburban newspaper industry, according to a statement by 21st Century Newspapers. The company was formed in 1995 by Frank Shepherd, Goldman Sachs Capital Partners and Kelso & Company.