Nexstar seeks $2.75 billion loan to finance Tegna deal

Nexstar Media Group has begun the process of securing $2.75 billion in financing to back its proposed acquisition of Tegna, sources told PitchBook.

BofA Securities, which is part of Bank of America, is leading the financing efforts and commitments from other interested lenders are due March 18, 2026.

• The company is discussing pricing for a 7-year Term Loan B. The interest rate would be 2.75% to 3.00% above Secured Overnight Financing Rate Data.
• The loan would be issued at 99% of its face value (investors pay $99 for every $100 of loan).
• Based on that pricing, the expected annual return for lenders would be roughly 6.77% to 7.04% if the loan is held to maturity.
• Lenders get 6 months of “soft call” protection at 101, meaning if the borrower refinances the loan within the first 6 months, they must repay lenders at 101% of the loan amount (a 1% premium).
• There is no ticking fee for the first 60 days after the loan is launched, but if the deal hasn’t closed by then, from day 61 to 120, the borrower pays lenders a ticking fee equal to 50% of the loan’s interest margin. After day 120, the ticking fee increases to 100% of the margin until the loan closes.

The structure means that lenders are likely to earn roughly 6.8% to 7.0% on their investment. They will also have some protection against early refinancing and may receive additional fees if the loan closing is delayed.

In addition to BofA Securities, multiple other banks are also taking a major role in the deal. 

Nexstar is proposing to buy Tegna for $22 per share that would be valued at around $6.2 billion, including debt. 

Once completed, Nexstar has told investors it hopes to realize approximately $300 million in savings each year by combining select operations. 

The deal faces regulatory approval, including FCC OKs to transfer Tegna’s licenses to Nexstar. The combined company will control 265 full-power stations that would serve 80% of the U.S. 

The proposed merger likely hinges heavily on changes to ownership-cap regulations. 

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Nexstar already has a Term Loan B that is the result of a refinancing effort in June 2025. It’s due in 2032. The company also has a $1.86 billion Term Loan A and $750 million in revolving credit. Those loans are due June 2030.

The company has around $2.7 billion in additional debt, including two unsecured notes that are due in June 2027 and November 2028.