There is now a seeking alpha article about it. Gray's bonds trade at 6%, they have excellent credit and now have low enough leverage that they can bypass the high yield market and go straight to the bank debt market if they want.
You got the good news today. The FCC approved their acquisition of Shurz. We've seen this with this sector before, at times the market just crushes it. But the balance sheet is in the best positioned it's ever been in, and they are going to shatter all records with there performance this year. I feel safe in saying that is an indisputable fact. Listen to the replay of the CBS call, TV Broadcast sector is very hot right now. You wouldn't know it by looking at the stock, but those are the facts on the ground.
Agree, plus the free cash flow generation will be impressive, pay attention to NXST earnings call when they give us 16/17 free cash flow per share guidance, my guess is that it will be over $11 per share per year. NXST stock will fly in my opinion.
The Meredith proposal is not happening, at least not in its current form. The Auction starts March 29th, but won't be over until the fall (September/October/November), we won't know nothing until the FCC announces the results.
Meg shareholders get $10.55 cash, plus whatever spectrum they sell in the auction, I believe their estimates are $2.50-$4.50. These deal will close within days of the FCC announcing the auction results. So we are going to get ~$12.50 - $15 in cash in October/November, plus .1249 shares of Nexstar. I think NXST is extremely under valued here, they will be doing over $10.50 per share in FCF per year. I think the NXST piece will eventually be worth $12, but the market today is saying it's worth $6. I see total value at the close to be $18.50-$27 (I know it's a wide range, but lots of variables). One thing I can say with certainty. The day that the FCC announces the spectrum results will be insane for this sector!
I saw a story that MDP and MEG were negotiating an exit. MDP wanted to buy a couple of TV stations and 2 of the digital business at a discount. MEG countered, but they couldn't come to terms. Sounds like MDP is trying to extract as much value as they can from the break up (don't blame them), but it looks like they know they have no chance of outbidding NXST.
I completely agree with Dan on why the stock isn't higher. The market is it's own animal, and right now it's ugly. I think it will be very similar to the Lin deal.
The NXST deal has much more cash component, $10.55 vs. $3.90, better management and no magazines. MDP is slapping 9x multiple on the magazine business, and nobody buys that.
It appears that their is no cap on the MEG spectrums sales in the NXST deal. I believe the NXST deal will prevail. Clearly that is what MEG wants and their shareholder base does as well. Nobody wants exposure to the Magazine business. Plus NXST management is better than MDP management, especially when it comes to creating shareholder value.
Think a deal gets done. The math works for nexstar even over $18. They are just playing hard ball but I think it's the best deal for both companies and they work it out. I think Meredith stands down but that's just a guess.
Very kind of you, but for now I'll pass. By the way CNBC is reporting that NXST offered $16.30 and MEG countered at $18.60, and they are currently at an impass. Sounds to me they are close enough, I believe this deal will get done. Right now the deal is works for both companies at both levels, just arguing on % of synergies.
This will be interesting, MDP has the balance sheet to pay higher cash component, but NXST has better management and is a pure play. Both have substantial room to go higher and the deal to be accretive to their respective shareholder bases, just a matter of how bad they want it. Could see mid 20's and still be a good deal for both NXST and MDP shareholders, the math works. Although I still say the structure of the deal is more significant than the actually number they value MEG at, given the stock component.