Scripps secures new financing to extend debt maturities

CINCINNATI - The E.W. Scripps Company (NASDAQ: SSP), currently trading at $1.43 and maintaining a market capitalization of $126 million, has successfully negotiated a series of financial transactions aimed at restructuring its debt, according to a recent press release. According to InvestingPro analysis, the company’s financial health score is fair, with liquid assets exceeding short-term obligations. The media firm has entered into a transaction support agreement with lenders representing a significant portion of its outstanding term loans and has secured commitments for a new accounts receivable securitization facility and an extension of its revolving credit facility.

Under the terms of the agreement, Scripps will address up to $1.3 billion of its existing term loans. The consenting lenders have agreed to exchange their holdings of the current B-2 term loans for new ones maturing in June 2028. Additionally, the B-3 term loans will be exchanged for a combination of new B-2 and new B-3 term loans, the latter now due in November 2029.

The company has also executed commitment letters for a $450 million accounts receivable securitization facility, which will be utilized to partially repay the existing B-2 term loans. Moreover, Scripps has committed to a new $208 million revolving credit facility set to mature in July 2027, replacing a portion of its existing credit facility. With total debt of $2.89 billion and a current ratio of 1.34, the company maintains adequate liquidity despite its debt load. Discover more detailed financial metrics and exclusive insights with InvestingPro, which offers comprehensive analysis of over 1,400 US stocks.

As a result of these transactions, Scripps will have no remaining B-2 term loans outstanding. Any B-3 term loans not exchanged will become subordinated to the new financing arrangements. The company anticipates completing these transactions by April.

Jason Combs, Scripps’ Chief Financial Officer, expressed gratitude for the support from investors and emphasized the restructuring’s role in facilitating the company’s strategic initiatives and improving its operating performance.

The company plans to file a Form 8-K with the Securities and Exchange Commission to provide further details on the terms of the transactions. With an EBITDA of $470 million in the last twelve months and trading near its 52-week low, InvestingPro’s Fair Value analysis suggests the stock may be undervalued. Access the full Pro Research Report and 10+ additional ProTips by subscribing to InvestingPro. Legal and financial advisors were engaged to assist in the refinancing, including Simpson Thacher & Bartlett LLP and Perella Weinberg Partners for Scripps, with Davis Polk & Wardwell LLP and Moelis & Company LLC advising an ad hoc group of initial consenting holders.

This press release does not constitute an offer to sell or buy securities and contains forward-looking statements subject to risks and uncertainties. The company has clarified that actual results may differ materially from those projected in these statements. The information provided is based on the press release statement from The E.W. Scripps Company.

In other recent news, The E.W. Scripps Company has experienced several notable developments. Moody’s Ratings has affirmed the company’s B3 corporate family rating but downgraded its probability of default rating to Caa1-PD, while revising the outlook to negative due to refinancing risks and structural pressures. Additionally, Scripps has secured a multi-year affiliation deal with NBC, continuing their longstanding partnership across 11 television stations, which highlights the resilience of the network-affiliate model. In a strategic move, Scripps finalized the sale of its San Diego tower sites for $20 million to K2 Towers, with a nominal leaseback agreement indicating ongoing operational needs. The company has also announced the appointment of Adam Harman as Senior Vice President of Programming, who will focus on enhancing content offerings across Scripps’ networks. Harman’s extensive experience includes roles at A+E Networks and NBCU’s Style Network. These developments come as Scripps continues to navigate the evolving media landscape.

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