RLPC: ION Media readies $795M dividend recap loan
NEW YORK Dec 3 (Reuters) - Entertainment company ION Media Networks Inc is taking advantage of robust leveraged loan markets to launch a $795 million dividend recap loan via lead bank JP Morgan, sources told Thomson Reuters LPC.
A lender conference call is set for 11 a.m. Wednesday.
ION Media, home to ION Television and the network's original series Flashpoint that aired for five seasons, plans a new loan split between a $75 million, five-year revolver and a $720 million, seven-year term loan B.
The company will use proceeds of the term loan B to back a dividend to shareholders. The revolver will refinance the company's existing revolving credit facility.
ION set indicative pricing guidance on the term loan B at a spread of LIB+375-400, with a 1 percent Libor floor, at 99.5. The loan will include 101 soft call protection for six months.
ION is back after pricing a $255 million, 5.5-year term loan B in January to fund an equity repurchase of minority investors. With this transaction, Black Diamond Capital Management became the sole shareholder of Media Holdco LP, a holding company for ION Media, according to ratings agency reports.
That loan, which ran alongside a $50 million revolver, priced at a spread of LIB+600, with a 1.25 percent Libor floor, at 98.5.
JP Morgan did not return emails for comment. ION Media and Black Diamond did not returns calls for comment by press time.
ION Media Networks is a privately owned, independent television company serving 260 million Americans in over 100 million U.S. homes.
- Malaysia military source says missing jet veered to west |
- Ukraine appeals to West as Crimea turns to Russia |
- Malaysia air probe finds scant evidence of attack: sources |
- UPDATE 1-Missing Malaysian plane last seen at Strait of Malacca-source
- CIA accused of spying on U.S. Senate intelligence committee