Gabelli & Co Reiterates Buy, $12.50 PT on Belo Corporation

Gabelli & Co reiterates its Buy rating and price target of $12.50 on Belo Corporation BLC as the company announced that it had amended and extended its bank credit facility. Gabelli & Co. notes, "The new credit has improved terms and less restrictive covenants that subject to liquidity and leverage tests provide a restricted payments basket (RPB) of up to $100 mm. ...Based on our estimates, we believe Belo could execute against the RPB. At present, dividends amount to about $100 mm annually. We estimate that from the fourth quarter of 2011 through the maturity of the 6.75% notes, Belo will roughly generate enough free cash flow to repay the notes." BLC closed at $5.78 per share on Wednesday.