DALLAS: Belo Corp. priced its previously announced offering of $275 million in senior notes due 2016. The notes will bear an 8 percent annual interest rate, payable semi-annually starting May 15, 2010 and occurring on that date and on Nov. 15. The notes were issued at 98.045 percent of their face value.
Belo intends to use net proceeds to pay down its credit facility, to be amended on the closing of the note offering. The amendment will reduce Belo’s obligation to $461 million through June 7, 2011, and $205 million through the Dec. 31, 2012 expiration of the loan.
Belo finished the third quarter of 2009 with total debt of more than $1 billion, down $50 million from Dec. 31, 2008. The pure-play broadcaster reported a loss of $150.5 million on revenues of $140.6 million, inclusive of a $242 million write-down on spectrum licenses.
More on Belo:
November 3, 2009: “Belo Revenues Decline 18 Percent”
Belo’s bottom line for the third quarter was dragged down by a $242 million non-cash impairment charge on the company’s broadcast spectrum licenses.
August 3, 2009: “Belo Reports 2Q in Line with Industry”
Belo said it met analyst estimates with earnings of 10 cents a share for the second quarter, compared to 25 cents last year.
April 30, 2009: “Belo Reports Net Income on Bond Retirement“
Belo’s 20 TV stations reported first-quarter net income of $8.9 million on revenues of $133.5 million, compared to a $15.3 million loss on revenues of $178.8 million in 1Q08.
March 20, 2009: “Belo Declares 2Q Dividend, Suspends the Rest“
Belo Corp. has declared a cash dividend of 75 cents a share payable June 5 to stockholders of record as of May 15. Subsequent dividends will be suspended “indefinitely,” the company said.
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