Gannett to kick off debt package for Belo buy next week - report.
21 June 2013 a[euro]" US media and marketing group Gannett Co Inc (NYSE:GCI) is seen to commence next week general syndication of a USD1.25bn (EUR943m) pro rata financing package that would support its planned takeover of TV stations operator Belo Corp (NYSE:BLC), informed people told Thomson Reuters LPC.
The package includes a five-year revolver of USD1bn and a USD250m term loan, Reuters said, adding that the deal is being led by JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C). The loans are launched to top tier lenders.
As unveiled earlier in June, Gannett agreed to buy Belo for a cash price of USD13.75 per share and USD1.5bn in total, plus the assumption of USD715m in existing debt. With this acquisition, the company will almost double its broadcast portfolio to 43 stations from the current 23, including ones serviced by certain sharing arrangements.
Apart from debt, Gannett will also use cash on hand to cover the purchase price.
Closing is subject to some regulatory nods, including clearance by the Federal Communications Commission (FCC), as well as to approval by holders of at least two-thirds of Beloa[euro](tm)s voting shares. Directors and executives with a combined shareholding of some 42% have already agreed to vote in favour of the deal.Country: USASector: MediaTarget: Belo CorpBuyer: Gannett Co IncDeal size in USD: 1.5bnType: Corporate acquisitionFinancing: Cash & Debt, Existing resourcesStatus: Agreed
|Printer friendly Cite/link Email Feedback|
|Publication:||M & A Navigator|
|Date:||Jun 21, 2013|
|Previous Article:||Itochu, Mitsui to invest USD1.5bn in BHP Billiton Australian mine.|
|Next Article:||US senators demand review of food safety issues in Shuanghui, Smithfield deal.|