Bank of Novia Scotia and SunTrust Bank have stepped up to join Bank of America on Media General, Inc.'s $1 billion refinancing. Sun Trust is documentation agent, Scotia is syndication agent and B of A is lead manager for the credit launched June 5. The Richmond, Va.-based media conglomerate is involved in publishing, broadcasting and newsprint.
A spokesman for Media General said that the loan was maturing, and though two years were left on the credit, the company wanted to replace it with time to spare. He declined to comment on why the lead banks had changed. First Union, Toronto Dominion and NationsBank were the previous banks, but noted that 80% of the bank group remains the same.
Pricing on the five-year revolver is LIBOR plus 1 3/8%, with commitment fees of 3/4% for a $100 million underwriter tier, managing agents snag 5/8% for $50 million. Co-agents committing $35 million receive 1/2% and $25 million participants 3/8%. The loan refinances a $1.2 billion revolving credit facility, put in place in 1996. The spread on the previous loan was LIBOR plus 5/8%. Initially the pricing on the new loan is based on leverage though once the credit is assigned a rating by the agencies, the company can opt to move to a ratings grid, said a banker familiar with the credit. He added that bankers have been receptive to the deal.