Yesterday (Dec. 4), Cumulus Media Holdings set terms on a $2.23 billion loan to refinance debt within the company. According to Thompson Reuters, LPC, Cumulus is marketing a $200 million five-year revolver and a $2.025 billion seven year first lien term loan.
Cumulus has set pricing of LIB +325-350 with a 1% Libor floor and 99.5 issue discount on the new loan. The company hopes to refinance its first and second lien loans. As of September’13, Cumulus owed $1.24 billion on its first lien loan due Sept’18 and $785.5 million on its second lien loan due Sept’19.
Carl Salas, VP and Senior Credit Officer at Moody’s Investors Services, commented on the company’s situation, saying, “It’s a meaningful improvement in their annual debt service. They will save upwards of $30-35 million in interest costs which adds nicely to their free cash flow generation.”
Moody’s has given Cumulus a B2 corporate family rating and the new $2.025 billion first lien term loan a B1 rating.
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Michael Smith is the Operations Manager at MusicRow Enterprises, where he works in the sales and editorial departments, and manages MusicRow's CountryBreakout Chart. He holds a BA from Vanderbilt University. Please send feedback to msmith@musicrow.comView Author Profile
