Tegna raises $550M in debt financing
Funding to pay outstanding debt
Tysons-based broadcast and digital media company Tegna Inc. announced Thursday it has raised $550 million in debt financing, which will go to pay outstanding debt.
“With this successful offering, Tegna has reduced our overall average borrowing costs and locked in a lower fixed interest rate as we did earlier this year, further strengthening our balance sheet as part of advancing our five-pillar strategy to drive long-term value creation,” Tegna President and CEO Dave Lougee said in a statement.
The company intends to use the net proceeds to repay the entire $350 million aggregate principal amount of its 4.875% senior notes due 2021 and $188 million aggregate principal amount of its 5.5% senior notes due 2024. Tegna will also use the funding for the redemption premium on its 5.5% senior notes due 2024, according to a company statement.
In March, the Fortune 1000 company announced that two offers to acquire the company had fallen through. Tegna had received four unsolicited acquisition offers, three of which were reportedly worth about $8.5 billion apiece. Offers included a joint proposal from investment firm The Najafi Cos. and religious broadcaster Trinity Broadcasting Network; and an offer from TV producer Byron Allen’s Allen Media Group. Other bidders included private equity firm Apollo Global Management Inc. and Gray Television Inc.
Once part of McLean-based Gannett Co. Inc. (the nation’s largest newspaper publisher), Tegna owns 62 television stations and four radio stations in 51 markets and its programming reaches 41.7 million television households.