IRVING, TEXAS: Nexstar Broadcasting said it has completed a previously announced note exchange. The broadcast company offered to exchange up to $143.6 million worth of its 7 percent senior subordinated notes due 2014, for up to $142.3 million in 7 percent senior subordinated pay-in-kind notes due 2014. The new notes were guaranteed by each of the existing guarantors to the old ones. The exchange offer expired at midnight EST March 26.
More than $190.7 million (about 99.6 percent) in old notes were tendered for exchange the offer expired, exceeding the minimum, and thus reduced on a pro rata bases for all of those who accepted the offer. Nexstar Broadcasting issued $142.3 million worth of the new notes March 30.
As a result of the exchange offer, Nexstar has $142.3 million in new notes and $47.9 million in old notes outstanding. From the date of issuance through Jan. 15, 2011, Nexstar will pay interest on the new notes by issuing additional new notes. PIK interest will accrue at 0.5 percent per anum calculated on a semi-annual bond equivalent basis, such that as of Jan. 15, 2011, the total principal amount of all new notes in this exchange will equal $1,000. After that date, all new notes will accrue cash interest at 7 percent.
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