U.S. TV broadcaster Nexstar Broadcasting Group plans to issue a new credit facility and new senior unsecured notes to finance its acquisition of 12 TV stations owned by Newport Television Holdings and refinance current debt. We expect the stations that Nexstar will acquire from Newport Television will improve Nexstar's station portfolio and generate moderate cost synergies. We are raising our corporate credit rating on Nexstar to 'B+' from 'B', rating the company's proposed credit facility 'BB' with a recovery rating of '1', and rating the new $200 million senior unsecured notes 'B-' with a recovery rating of '6'. The stable rating outlook is based on our expectation that Nexstar will maintain a lease-adjusted debt to trailing-eight-quarter EBITDA ratio of 6x
