Scripps Does Debt Refi

CINCINNATI – The E.W. Scripps Co. said it has refinanced its debt with a new $275 million senior secured credit facility.

The facility consists of a $200 million, seven-year term loan and a $75 million, five-year revolver. The company used net proceeds to refinance the previous senior secured credit facilities scheduled to mature in 2016.

“Terms of the new debt align very well with our strategic plans,” said Tim Wesolowski, chief financial officer for Scripps. “Our ability to make acquisitions, to invest in digital opportunities and to repurchase stock is greatly enhanced by the flexibility of this ‘covenant lite’ refinancing.”

Because of the refinancing, Scripps received first-time credit ratings from Moody’s Investor Service and Standard & Poor’s. Moody’s assigned a Ba2 Corporate Family Rating as well as a Ba2 to the company’s credit facilities. S&P assigned the company a BB- preliminary corporate credit rating and the senior secured credit facility a BB+ preliminary issue-level rating. The rating outlook from both rating agencies is stable.

SunTrust Robinson Humphrey, RBC Capital Markets and Wells Fargo Securities served as Joint Lead Arrangers and Joint Bookrunning Managers on the transaction, with SunTrust Bank serving as the administrative agent.