Nexstar Media Group Inc. has announced it has agreed to acquire U.S. local TV broadcaster TEGNA Inc. The transaction will require either a waiver by the Federal Communication Commission (FCC) or a formal change in the FCC's ownership rules. The all-cash transaction values TEGNA at $6.2 billion, including the assumption of $3.1 billion of debt. We estimate pro forma S&P Global Ratings-adjusted net debt to EBITDA (calculated on an average trailing-eight-quarters basis) will rise to the mid- to high-4x area and will take about two years to decline to below 4x, our downgrade threshold for the 'BB+' rating. Because of the elevated leverage, we placed all our ratings on Nexstar on CreditWatch with negative implications pending completion of the regulatory
