Nexstar Media To Sell Nineteen Stations In Fifteen Markets For $1.32 Bln

(RTTNews) - Nexstar Media Group, Inc. (NXST) and Tribune Media Co. (TRCO) announced Wednesday that Nexstar has entered into definitive agreements to sell a total of nineteen stations in fifteen markets for an aggregate $1.32 billion in cash following the acquisition of Tribune Media by Nexstar.

Under the terms of the agreements, Tegna, Inc. (TGNA) will acquire eleven stations in eight markets for $740 million and The E.W. Scripps Co. (SSP) will acquire eight stations in seven markets for $580 million.

Separately, Nexstar remains engaged in active negotiations to divest two stations in Indianapolis, Indiana.

The planned divestiture of the nineteen stations is subject to FCC approval, other regulatory approvals, the closing of the Nexstar / Tribune Media transaction and other customary closing conditions. The divestitures are expected to be completed on, or about the time of, the closing of the Nexstar / Tribune Media transaction, which is expected later this year.

On December 3, 2018, Nexstar agreed to acquire all outstanding shares of Tribune Media. The planned divestiture of nineteen stations reflects Nexstar's stated intention to divest certain television stations in order to comply with the FCC local and national television ownership rules and to obtain FCC and Department of Justice approval of the proposed Nexstar / Tribune Media transaction.

Nexstar intends to use the net proceeds from the divestitures to fund the Tribune acquisition and to reduce debt.

A Merrill Lynch is acting as financial advisor and Kirkland & Ellis LLP and Wiley Rein LLP are acting as legal counsel to Nexstar Media in connection with the proposed divestitures.