Daily News: November 27, 2017

Citigroup, RBC Others Support Meredith Acquisition of Time


Meredith agreed to acquire Time, Inc. in an all-cash transaction valued at $2.8 billion. Meredith secured a total of $3.55 billion in debt financing, including a $350 million undrawn revolving credit facility from RBC Capital Markets, Credit Suisse, Barclays and Citigroup Global Markets.

Iowa-based Meredith, publisher of magazines including Parents, House and Garden and Family Circle, also secured $650 million in preferred equity commitment from Koch Equity Development. Funds will be used to finance the transaction and refinance existing debt.

“We are creating a premier media company serving nearly 200 million American consumers across industry-leading digital, television, print, video, mobile, and social platforms positioned for growth,” said Meredith Corporation Chairman and CEO Stephen M. Lacy. “We are adding the rich content-creation capabilities of some of the media industry’s strongest national brands to a powerful local television business that is generating record earnings, offering advertisers and marketers unparalleled reach to American adults.”

“When you combine our strong local television business – which has grown operating profit 15% annually over the last five years – with the trusted, premium multi-platform content creation of Meredith and Time Inc., it creates a powerful media company serving consumers and advertisers alike. We look forward to completing the transaction, welcoming the Time employees to Meredith, delivering on our pledge to achieve identified synergies and and growing shareholder value,” said Meredith President and COO Tom Harty.

Under the terms of the agreement, Meredith will commence a tender offer to acquire all the issued and outstanding shares of Time common stock for $18.50 per share in cash.

BDT & Company and Moelis & Company are serving as financial advisors to Meredith, and Cooley is serving as legal counsel.