News Column

New Media Announces Successful Debt Refinancing

June 21, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- New Media Investment Group Inc. ("New Media" or the "Company", NYSE:NEWM) announced the successful completion of a new $200.0 million term loan as well as a $25.0 million revolving credit facility. The term loan is priced at L+6.25% with a 1.00% LIBOR floor and has mandatory annual amortization of 1.00%. The revolver is priced at L+5.25%, with a step down based on the Company's total leverage ratio. The new financing structure will be accretive to Distributable Cash Flow ("DCF") per share by $0.14 in fiscal year 2015, and $0.26 in fiscal year 2016, through rate and amortization improvement. The proceeds of the new term loan will be used to repay New Media's existing facilities and transaction costs, with the balance of the proceeds remaining available for investments and other corporate purposes.

"The new credit facility greatly improves our operational flexibility and DCF," said Mike Reed, Chief Executive Officer of New Media. "By combining our multiple facilities into one, we are able to increase the overall liquidity of the Company.

Keywords for this news article include: Investment and Finance, New Media Investment Group.

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Source: Investment Weekly News


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