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Note 10 - Subsequent Events
9 Months Ended
Sep. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

Note 10: Subsequent Events


In October 2014, the Company amended its existing senior secured credit agreement to extend the maturity of the existing $60 million revolving credit facility to five years, reduce the interest rate (effective after consummation of the LIN merger) to LIBOR + 2.50% and make certain other implementing and administrative edits.


Concurrent with the consummation of its announced business combination (“LIN Merger”) with LIN Media LLC (“LIN”), the Company will enter into an additional amendment to its existing senior secured credit agreement to be used in connection with the transaction. These incremental credit facilities consist of (i) a $90 million incremental revolving credit commitment and (ii) an $825 million incremental term loan B facility (collectively, the “Incremental Facilities”). As of the filing date of this Form 10-Q, the amendment implementing such Incremental Facilities has not been executed and delivered, nor have any amounts been borrowed under these Incremental Facilities.


In addition, in early November 2014, the Company, through a newly formed wholly owned subsidiary (the “Issuer”), issued $400 million of senior unsecured notes (the “Senior Notes”). The Senior Notes were issued at a discount of 0.5% and bear interest at 5.875% for a term of eight years. As of the filing date of this Form 10-Q, net proceeds from the issuance of the Senior Notes were being held in escrow. Upon the closing of the LIN Merger, the Issuer will merge with and into LIN Television Corporation (“LIN Television”) with LIN Television continuing as the surviving corporation in such merger and assuming all of the Issuer’s obligations under the Senior Notes and the indenture governing the Senior Notes. The Company will also deposit $5.65 million, representing original discount and interest through December 31, 2014 into escrow. The Company can elect (with three days prior notice and funding of interest) to extend the contingency period for up to two 90-day periods.


The proceeds of the Senior Notes will repay certain LIN indebtedness while the Incremental Facilities, together with cash on hand and certain of the proceeds from previously announced divestitures, will be used to pay a portion of the merger consideration for the LIN Merger, repay certain other existing indebtedness of LIN and pay related fees and expenses.