Cumulus Refinances $2.23 Billion Of Debt
December 5, 2013 at 3:57 AM (PT)
REUTERS reports CUMULUS MEDIA set terms YESTERDAY (12/4) on a new $2.23 billion loan to refinance existing debt, writing, "the ATLANTA-based company is marketing a $200 million, five-year revolver and a $2.025 billion, seven-year first-lien term loan. The company set indicative pricing of LIB+325-350, with a 1% Libor floor, and a 99.5 original issue discount on the new term loan. Proceeds will refinance the company's current first- and second-lien loans. At SEPTEMBER 30th, CUMULUS had $1.24 billion outstanding on its first-lien term loan due September 2018, and $785.5 million out on its second-lien term loan due SEPTEMBER 2019."
"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 INVESTORS SERVICES VP/Sr. Credit Officer CARL SALAS told REUTERS.
MOODY'S rates CUMULUS' a B2 corporate family rating and assigned a B1 rating to the new $2.025 billion loan.