Byron Allen eyes Scripps TV stations, seeks private credit loan

Bloomberg | Media executive Byron Allen is weighing a bid for several television stations from broadcaster E.W. Scripps Co. and is seeking funding from the private debt market to pay for the potential deal, according to people with knowledge of the matter.

Allen Media Group, the company owned by the TV producer, is seeking financing from private lenders, said the people who declined to be identified as the details are private. The debt may be at least US$200 million, one of the people said.

The stations are not located in major TV markets, one of the people added. The discussions are in the preliminary stages and plans could change, the people said.

Representatives for Allen Media Group and E.W. Scripps declined to comment.

Allen had earlier expressed interest in expanding his media footprint by purchasing other firms that operate US television stations like Tegna Inc. or BET Media Group, the Paramount Global unit that runs the cable TV channels Black Entertainment Television and VH1, Bloomberg previously reported.

A former standup comic turned TV producer, Allen has also pursued bids that didn’t pan out for entertainment assets including the NFL’s Washington Commanders and Denver Broncos.

Allen Media Group owns Entertainment Studios Inc., The Weather Channel and several network-affiliated stations. It has previously turned to the broadly syndicated debt markets to fund acquisitions, including its purchase of Honolulu’s KITV and stations owned by Quincy Media.

It is considering private credit – where debt is held by just a few lenders and is not typically bought and sold – as some of its obligations have struggled. The company’s term loan is quoted at around 88 cents on the dollar, according to data compiled by Bloomberg, while its US$650 million of 10.5 percent bonds change hands at distressed levels, according to Trace.