Nexstar more than $646 million in debt

Nexstar Broadcasting officials trumpeted a new income stream when they reached retransmission deals with Cable One, Cox Communications, and other cable systems. Nexstar's annual report, filed Thursday with the Securities and Exchange Commission, indicates much of that money will go toward paying off debt.
According to the report, Nexstar, which owns KSNF in Joplin and KSFX in Springfield and is de facto owner of Mission Broadcasting stations KODE in Joplin and KOLR in Springfield, says, "As of December 31, 2005, Nexstar and Mission had total combined debt of $646.5 million, which represented 111.4% of Nexstar and Mission’s combined capitalization. Our and Mission’s high level of debt requires that a substantial portion of cash flow be dedicated to pay principal and interest on debt which will reduce the funds available for working capital, capital expenditures, acquisitions and other general corporate purposes."
Meanwhile, as the troops on the ground are being told to trim expenses as much as possible, down to for all intents and purposes combining the news product at KODE and KSNF, Nexstar increased its corporate spending by 6.6 percent or $800,000 during 2005, according to the report.
Corporate expenses were $11.7 million, compared to 10.9 million in 2004. "The increase during 2005 was primarily attributed to higher payroll related costs associated with an increase in corporate personnel necessary to effectively support our growing television station portfolio, along with an increase in regulatory compliance and financial reporting costs, partially offset by a lower amount of bonuses accrued in 2005," the report said.