Dial Global Closes On Recapitalization Deal
April 16, 2013 at 2:17 PM (PT)
DIAL GLOBAL, INC. has closed on its recapitalization deal refinancing its existing credit facilities, other obligations and equity interests.
The deal included an Amended and Restated Credit Agreement between the company, GENERAL ELECTRIC CAPITAL CORPORATION (administrative and collateral agent), and lenders that, after a $15 million paydown, left DIAL GLOBAL with a term loan of $136 million and revolving credit commitments of approximately $23 million, $18 million of which is drawn, and a maturity date under the First Lien Credit Agreement of OCTOBER 21st, 2016.
A second-priority-lien credit agreement between DIAL GLOBAL, CORTLAND CAPITAL MARKET SERVICES, LLC (administrative and collateral agent), and BLACKROCK KELSO CAPITAL CORPORATION (syndication agent and lender) for an additional $31.5 million term loan facility, with a maturity date of JULY 21, 2017, was also included, with BLACKROCK issued penny warrants to purchase 7.5% of tDIAL GLOBAL’s common stock.
Under the Second Lien deal, lenders restructured the existing $93 million in second lien obligations with a $30 million term loan with a maturity date of APRIL 16, 2018 and swapped $63 million in remaining obligations for a new Series A preferred stock, lenders getting penny warrants to purchase 12% of DIAL GLOBAL’s common stock and 12% of the outstanding shares of Series B preferred stock, Series C preferred stock and Series D preferred stock.
The warrants and Series B, C, and D preferred stock held by the second lien lenders will be subject to forfeit, in whole or in part, if DIAL GLOBAL retires all or a portion of the $30 million second lien term loan and the Series A preferred stock held by those lenders prior to certain specified dates.
The arrangement gave the preferred stock and warrant holders the right to elect three directors to DIAL GLOBAL’s new eight-person Board of Directors, and they elected BRIAN POPE, MARSHALL MERRIMAN and ETHAN UNDERWOOD.