Scripps Company Announces Offering of $650 Million Senior Notes for Debt Management

E.W. Scripps Company Launches $650 Million Note Offering

The E.W. Scripps Company (NASDAQ: SSP) has announced a significant financial maneuver with the launch of a private offering aimed at raising $650 million through new senior secured second-lien notes. These notes are expected to mature by 2030 and are part of Scripps' strategic initiatives to optimize its financial structure and repay existing debts.

Details of the Offering

This offering is designed to be flexible and responsive to market conditions. It is specifically positioned under exemptions from the registration requirements mandated by the Securities Act of 1933. Importantly, the notes will be secured by a second-lien on the company’s existing and future assets, enhancing their attractiveness to potential investors. Additionally, the guarantees will come from certain subsidiaries, ensuring that the offering has a solid financial backing.

Scripps plans to allocate the proceeds from this private offering strategically to manage its debt obligations. The funds will be utilized in the following ways:
1. Redeeming Outstanding Senior Notes: The company intends to clear its existing 5.875% senior notes due in 2027, which is expected to enhance its overall financial health.
2. Pre-paying Term Loans: A portion of the proceeds will be used to pay off some of the current borrowings under the company’s term loan B-2 facility due in 2028, further streamlining its debt.
3. Covering Transaction Costs: The remainder will go toward covering various fees and expenses associated with this offering, ensuring a smooth financial transition.

Access and Limitations

The newly issued notes and related guarantees will not be registered under the Securities Act or any other jurisdictions' securities laws, making the offering limited to individuals or entities deemed as qualified institutional buyers. This aligns with Scripps' continued commitment to maintaining a healthy capital structure while providing opportunities for strategic investments.

Forward-Looking Statements

It's important to note that this announcement contains forward-looking statements as defined by the U.S. Private Securities Litigation Reform Act of 1995. Such statements, including projections about the company’s operating results and financial condition, involve inherent risks and uncertainties. These could significantly affect actual outcomes and should not be relied upon as guarantees of future performance. Factors such as changes in advertising demand, operational costs, and strategic transaction capabilities might influence these outcomes.

About E.W. Scripps Company

Founded in 1878, the E.W. Scripps Company remains a dominant force in the media landscape of the United States, operating over 60 television stations across more than 40 markets. With a commitment to delivering responsible journalism, Scripps also operates well-known national news platforms like Scripps News and Court TV, alongside entertainment networks such as ION, Bounce, and Grit. The company has a rich heritage and a mission driven by the motto: "Give light and the people will find their own way.”

As Scripps embarks on this new financial journey, stakeholders remain optimistic about its prospects, considering both the anticipated market response and the solid foundations on which the company is built. Investors and analysts alike will be watching closely as Scripps navigates through this offering and positions itself for future growth and success.