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IRVING, Texas - Nexstar Media Group, Inc. (NASDAQ:NXST), a $5.2 billion market cap media company with a "GREAT" financial health score according to InvestingPro, announced Monday the successful refinancing of revolving credit facilities and term loans through its subsidiary Nexstar Media Inc. and Mission Broadcasting, Inc., a variable interest entity of the company.
The refinancing package includes a new $750 million Nexstar revolving credit facility and $75 million Mission revolving credit facility, both maturing in 2030. Additionally, the deal features a $1.905 billion Nexstar Term Loan A due 2030 and a $1.300 billion Nexstar Term Loan B due 2032. The company maintains strong liquidity with a current ratio of 1.74, indicating healthy coverage of short-term obligations.
The revolving credit facilities and Term Loan A will bear interest at the Secured Overnight Financing Rate plus 150 basis points per annum, representing a 10 basis point reduction from previous rates. The Term Loan B will bear interest at SOFR plus 250 basis points, an 11 basis point reduction for 1-month SOFR compared to the prior loan.
According to the company’s statement, the refinancing extends loan maturities, expands capacity under Nexstar’s revolving credit facility, and reduces interest rate margins. The new facilities replace Nexstar’s $550 million revolving credit facility due 2027, Mission’s $75 million revolving credit facility due 2027, Nexstar’s $2.091 billion Term Loan A due 2027, and Nexstar’s $1.358 billion Term Loan B due 2026.
Nexstar Media Group owns America’s largest local television broadcasting group with more than 200 owned or partner stations in 116 U.S. markets. The company also owns The CW network and holds a 31.3% ownership stake in TV Food Network. Trading at a P/E ratio of 8.6 and offering a growing dividend yield of 4.31%, InvestingPro analysis suggests the stock is currently undervalued. Discover more insights and access the comprehensive Pro Research Report covering Nexstar and 1,400+ other top stocks at InvestingPro.
The information was disclosed in a press release statement and detailed in an 8-K filing submitted by the company.
In other recent news, Nexstar Media Group reported its Q1 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $3.37 compared to the forecasted $3.26. The company recorded a revenue of $1.23 billion, which matched projections but reflected a 3.9% decline year-over-year. Despite the decrease in advertising revenue by 10.2%, Nexstar achieved a record first-quarter distribution revenue of $762 million. The company has projected growth in distribution revenue and aims for the CW Network to achieve profitability by 2026. Analysts from The Benchmark Company have shown interest in Nexstar’s strategies concerning regulatory changes, while Wells Fargo analysts noted that the company’s performance aligns with earlier guidance. Nexstar’s management emphasized the importance of expanding distribution and sports programming to mitigate declining advertising revenue. The company also highlighted its focus on strategic mergers and acquisitions, given its strong financial position and anticipated regulatory changes.
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