Home / Business and Economy / Nexstar Media Loan Hits $2.75 Billion
Nexstar Media Loan Hits $2.75 Billion
9 Mar
Summary
- A $2.75 billion loan funds Nexstar's Tegna acquisition.
- The loan offers a margin up to three percentage points above benchmark.
- Deal completion is targeted for the second half of 2026.
Banks, spearheaded by Bank of America, have initiated a $2.75 billion leveraged loan to finance Nexstar Media Group's acquisition of Tegna Inc. This loan is being offered with a margin of up to three percentage points above benchmark and a discounted price of 99 cents on the dollar.
Lenders had previously committed to providing as much as $5.73 billion in debt financing for the acquisition, which includes refinancing existing Tegna obligations. This offering serves as a crucial test for the leveraged loan market, which is currently navigating challenges such as AI disruption fears and geopolitical tensions in the Middle East.
The proposed purchase of Tegna by Nexstar was announced in August. If approved without divestitures, the merged entity would reach 80% of US television households. The deal requires US government approval, with the companies aiming to finalize the combination by the second half of 2026. This transaction is part of a broader trend altering America's media sector.
