Refinances
CUMULUS MEDIA has entered into an Amended and Restated Credit Agreement, consisting of a $2.025 billion term loan maturing in DECEMBER 2020 and a $200 million revolving credit facility maturing in DECEMBER 2018.
The proceeds from the Term Loan along with cash on hand have been used to repay in full all amounts outstanding under the first and second lien term loans under CUMULUS’ pre-existing credit agreements. Amounts outstanding under the Term Loan and the Revolver, which is currently undrawn, will bear interest at LIBOR + 325 bps, subject to a 1.00% LIBOR floor.
The refinancing follows the entry into a $50 million, 5-year revolving accounts receivables securitization facility, which CUMULUS entered into on DECEMBER 6th (NET NEWS 12/5). Advances under the securitization facility, which are subject to a borrowing base calculation, bear interest at LIBOR + 250 bps with no LIBOR floor.
“This highly successful refinancing transaction is expected to increase our free cash flow by greater than $30 million annually, extends our maturities through 2020 and simplifies our capital structure,” said CEO LEW DICKEY. “We believe our balance sheet has now placed us at a competitive advantage that positions us well for future growth opportunities.”
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