Gannett Co., Inc. has completed its acquisition of Belo Corp. for $1.5 billion in cash plus the assumption of $715 million of debt. The combination with Belo nearly doubles Gannett’s broadcast portfolio and creates the largest independent station group of “Big 4” major network affiliates in the top 25 markets, including stations to be serviced by Gannett under shared services and similar arrangements entered into as part of a restructuring. Gannett now reaches approximately one-third of all television households in America. The deal also significantly expands the company’s geographic reach and revenue diversity.
M&A partner and securities practice chair John Partigan led the Nixon Peabody LLP team, which included M&A partner Dick Langan, benefits partner Brian Kopp, tax partner Christian McBurney, antitrust partner Gordon Lang, labor and employment partner Michael Hausknecht, antitrust counsel Alycia Ziarno, M&A counsel Dan McAvoy, and associates Tiana Butcher, Pierce Han and Courtney Lindsay.
Nixon Peabody also represented Gannett on the financing of the merger transaction, which included the issuance of $600 million of 5.125% Senior Notes due 2019 and $650 million of 6.375% Senior Notes due 2023 under Rule 144A in October and an amendment and extension of Gannett’s $1.2 billion revolving credit facility, and the financing of the restructuring, which included bank loans to Sander Holdings, LLC and certain of its operating subsidiaries and Tucker Operating Co. LLC, third party operators who acquired certain broadcast television stations in markets where Gannett and Belo overlapped.
