Scripps completes transactions to refinance revolver and 2026, 2028 term loans

Rhea-AI Summary

The E.W. Scripps Company (NASDAQ: SSP) has completed major refinancing transactions to strengthen its balance sheet. The company has successfully:

• Refinanced $110.8M of B-2 term loans due 2028
• Refinanced $540.2M (99.8%) of B-3 term loans with $200M new B-2 loans due 2028 and $340.2M new B-3 loans due 2029
• Replaced existing revolving credit facility with new facilities totaling $278M in commitments
• Established new accounts receivable securitization facility with up to $450M in commitments

Following these transactions, Scripps now has $545.2M in new B-2 term loans and $340.2M in new B-3 term loans outstanding. The refinancing extends debt maturities and provides flexibility for strategic initiatives.

Positive

• Extended debt maturities, improving financial flexibility
• Successfully refinanced 99.8% of existing B-3 term loans
• Secured new $450M accounts receivable securitization facility
• Increased revolving credit capacity to $278M

Negative

• Maintains substantial debt load with $885.4M in term loans outstanding
• Increased complexity in debt structure with multiple facilities and maturities

Insights

Financial Restructuring Specialist

Scripps has completed a comprehensive debt refinancing that significantly extends its maturity profile and provides enhanced financial flexibility. The company has successfully refinanced approximately $651 million in term loans, extending maturities to 2028 and 2029, while also replacing its existing revolving credit facilities with new ones totaling $278 million in commitments extending to 2026 and 2027.

The most notable aspect of this refinancing is the establishment of a new accounts receivable securitization facility with up to $450 million in commitments. This type of facility allows Scripps to monetize its receivables, typically at lower interest rates than traditional debt, improving near-term liquidity without technically increasing leverage.

What's important here is the maturity extension rather than debt reduction. Scripps now has $545.2 million in new B-2 loans due 2028 and $340.2 million in B-3 loans due 2029. While this doesn't reduce the overall debt burden, it eliminates near-term refinancing risk and provides breathing room for strategic initiatives.

For a company with a market cap of just $209 million managing debt exceeding $885 million, this refinancing was likely necessary to prevent potential covenant pressure. The transaction doesn't fundamentally alter Scripps' leverage position but does buy valuable time and operational flexibility for a media company navigating challenging industry dynamics.

CINCINNATI, April 10, 2025 /PRNewswire/ -- The E.W. Scripps Company (NASDAQ: SSP) has successfully completed a series of previously announced refinancing transactions, which include:

• Refinance of approximately $110.8 million aggregate principal amount of existing tranche B-2 term loans with new tranche B-2 term loans due 2028, with remaining existing tranche B-2 term loans repaid in cash, including with proceeds from a new accounts receivable securitization facility, approximately $223.5 million of proceeds from new tranche B-2 term loans funded by certain participating lenders and cash on hand (including from drawings under our revolving credit facilities);
• Refinance of approximately $540.2 million (99.8%) aggregate principal amount of existing tranche B-3 term loans with $200 million new tranche B-2 term loans due 2028 and $340.2 million new tranche B-3 term loans due 2029, with remaining existing tranche B-3 term loans repaid in cash with cash on hand (including from drawings under our revolving credit facilities);
• Replacement of the existing revolving credit facility with a new revolving credit facility with aggregate commitments of up to $208 million due July 2027 and another new non-extended revolving credit facility with aggregate commitments of up to $70 million due January 2026; and
• Entrance into a new accounts receivable securitization facility with aggregate commitments of up to $450 million.

As a result of the transactions:

• No existing B-2 term loans, existing B-3 term loans or existing revolving commitments remain outstanding;
• Scripps has $545.2 million aggregate principal amount of new tranche B-2 term loans outstanding and $340.2 million aggregate principal amount of new tranche B-3 term loans outstanding; and
• Scripps will have total aggregate revolving commitments of up to $278 million, inclusive of the new non-extended revolving credit facility set forth above.

The completion of the transactions strengthens the balance sheet by extending maturities and providing the company flexibility to continue execution of key strategic initiatives.

The company will file a Form 8-K with the Securities and Exchange Commission that will contain further details regarding the completion of the transactions. The foregoing descriptions of the transactions do not purport to be complete and are qualified in their entirety by reference to the Form 8-K and exhibits thereto.

Simpson Thacher & Bartlett LLP served as counsel and Perella Weinberg Partners served as financial advisor to the company. Davis Polk & Wardwell LLP served as counsel and Moelis & Company LLC served as exclusive financial advisor and investment banker to an ad hoc group of certain of existing B-2 and B-3 lenders. Cahill Gordon & Reindel LLP acted as counsel to JPMorgan Chase Bank, N.A., as administrative agent for the new credit facilities and left lead arranger with respect to the new revolving credit facility. Mayer Brown LLP served as counsel to PNC Bank, National Association, as administrative agent and a lender with respect to the new accounts receivable securitization facility. Orrick Herrington & Sutcliffe LLP served as counsel to KKR Credit Advisors (US) LLC, on behalf of itself, certain of its affiliates and its or their managed funds and accounts, as a lender with respect to the new accounts receivable securitization facility.

This press release is not intended to be, and does not constitute, an offer to sell, buy or subscribe for any securities or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this communication is not an offer of securities for sale into the United States or any other jurisdiction. No offer of securities shall be made absent registration under the Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.

Forward-looking statements
This document contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "believe," "anticipate," "intend," "expect," "estimate," "could," "should," "outlook," "guidance," and similar references to future periods. Examples of forward-looking statements include, among others, statements the company makes regarding expected operating results and future financial condition. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on management's current beliefs, expectations, and assumptions regarding the future of the industry and the economy, the company's plans and strategies, anticipated events and trends, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties, and changes in circumstance that are difficult to predict and many of which are outside of the company's control. The company's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the company's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: change in advertising demand, fragmentation of audiences, loss of affiliation agreements, loss of distribution revenue, increase in programming costs, changes in law and regulation, the company's ability to identify and consummate strategic transactions, the controlled ownership structure of the company, and the company's ability to manage its outstanding debt obligations. These statements include, but are not limited to, the company's ability to realize the intended benefits of the refinancing transactions described above.

A detailed discussion of such risks and uncertainties is included in the company's Form 10-K, on file with the SEC, in the section titled "Risk Factors." Any forward-looking statement made in this document is based only on currently available information and speaks only as of the date on which it is made. The company undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

Media contact: Becca McCarter, The E.W. Scripps Company, (513) 410-2425, rebecca.mccarter@scripps.com
Investor contact: Carolyn Micheli, The E.W. Scripps Company, (513) 313-5910, carolyn.micheli@scripps.com

About Scripps
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating connection. As one of the nation's largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of more than 60 stations in 40+ markets. Scripps reaches households across the U.S. with national news outlets Scripps News and Court TV and popular entertainment brands ION, ION Plus, ION Mystery, Bounce, Grit and Laff. Scripps is the nation's largest holder of broadcast spectrum. Its Scripps Sports division serves professional and college sports leagues, conferences and teams with local market depth and national broadcast reach of up to 100% of TV households. Founded in 1878, Scripps is the steward of the Scripps National Spelling Bee, and its longtime motto is: "Give light and the people will find their own way."

 

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SOURCE The E.W. Scripps Company

FAQ

What is the total value of Scripps (SSP) new term loans after refinancing?

After refinancing, Scripps has $545.2M in new B-2 term loans and $340.2M in new B-3 term loans, totaling $885.4M.

When do Scripps (SSP) new B-2 and B-3 term loans mature?

The new B-2 term loans mature in 2028, while the new B-3 term loans mature in 2029.

What is the size of Scripps (SSP) new revolving credit facilities?

Scripps has new revolving credit facilities totaling $278M, including a $208M facility due July 2027 and a $70M facility due January 2026.

How much is Scripps (SSP) new accounts receivable securitization facility worth?

The new accounts receivable securitization facility has aggregate commitments of up to $450M.